WINNIPEG — The ICE Futures canola market was steady to lower on Wednesday with mostly negative sentiment in comparable oils.
European rapeseed was positive, but Chicago soyoil was lower and Malaysian palm oil was mixed. Crude oil was also in the red.
One analyst said canola’s weakness stemmed from selling in the vegetable oil complex. Another remarked that there is currently nothing to suggest a bottom in canola prices would be imminent.
At mid-afternoon, the Canadian dollar was down three-tenths of a United States cent compared to Tuesday’s close.
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There were 36,015 canola contracts traded on Tuesday, which compares with Monday when 55,289 contracts changed hands. Spreading accounted for 21,428 of the contracts traded.
For the first time in more than a month, CORN prices on the Chicago Board of Trade (CBOT) on Wednesday went up for the third straight day. The May contract surpassed the US$4.30 per bushel mark for the first time in a week.
The United States Energy Information Administration (EIA) reported 1.078 million barrels of ethanol production per day on average during the week ended Feb. 23, down 6,000 from the week before. Ethanol stocks grew by 520,000 barrels at 26.022 million.
Brazilian corn exports for February were as previously projected at 716,700 tonnes, according to ANEC, Brazil’s association of cereal exporters.
The weather in northern Brazil is expected to be near normal over the next two weeks while Argentina may see some dryness over the next 10 days with the exception of rains on the weekend.
South African corn production is estimated to be 14.36 million tonnes this year by the country’s crop estimates committee, down 12.6 per cent from last year.
Zimbabwe plans on importing 1.1 million tonnes of maize over the next year, according to reports, with the country’s grain millers association already securing 600,000 tonnes worth in contracts.
The May SOYBEAN contract rose for the second time in three sessions despite nearly hitting the contract low during the day.
Abiove projected Brazilian soybean production this year to be 153.8 million tonnes, down 2.3 million from its previous estimate.
Traders are estimating the January soybean crush in the U.S. to be 196.6 million bushels on average ahead of Friday’s Fats and Oils Report from the U.S. Department of Agriculture (USDA). Soyoil stocks are estimated to increase eight per cent from the previous month at 1.982 billion pounds.
Palm oil production in Indonesia is expected to increase by five per cent at 57.6 million tonnes in 2024. However, exports should remain at around 32 million to 33 million due to greater domestic demand.
A volatile week of trading continued for the three major U.S. WHEAT varieties with Chicago soft wheat seeing the largest losses.
The western half of the U.S. is expected to be cooler, while the eastern half would be warmer next week. Temperatures in the Central Plains are expected to be near normal in the first half of March.
Polish Prime Minister Donald Tusk said on Tuesday he would not rule out widening bans on Ukrainian grain imports if the European Union (EU) does not act to protect the bloc’s interests.
Thailand purchased 60,000 tonnes of feed wheat, likely from the EU.
