WINNIPEG – The ICE Futures canola market was in decline on Wednesday due to pressure from vegetable oils.
Chicago soyoil extended its losses, as well as those for European rapeseed and Malaysian palm oil. However, crude oil gained more than US$2 per barrel due to optimism over the United States government raising its debt ceiling.
At mid-afternoon, the Canadian dollar gained less than one-tenth of a U.S. cent compared to Tuesday’s close.
About 33,373 canola contracts were traded on Wednesday, which compares with Tuesday when 28,810 contracts changed hands. Spreading accounted for 20,000 of the contracts traded.
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CORN prices had their worst day since last August in a day of broad selling on the Chicago Board of Trade (CBOT).
Turkish President Recep Tayyip Erdogan announced earlier today that the Black Sea Grain Initiative has been extended for another 60 days, allowing Ukraine to ship grain through its ports. The news surprised many as Russia often stated it would not agree to an extension unless concessions were made. No other details from the agreement were announced. The deadline was originally on Thursday.
During the week ended May 12, 987,000 barrels of ethanol were produced per day according to the U.S. Energy Information Administration (EIA). Ethanol stocks declined by 100,000 barrels to 23.19 million.
For the week ended May 11, analysts are expecting the U.S. Department of Agriculture’s (USDA) weekly export sales report to show 50,000 and 300,000 tonnes of new crop corn bookings, as well as anywhere between 500,000 tonnes of old crop corn cancellations and 300,000 tonnes booked.
SOYBEANS took another tumble on Wednesday, dragged down by soyoil’s continued downturn.
Analysts expect the USDA to report less than 300,000 tonnes of both old crop and new crop to be sold for export. Analysts are also estimating between 50,000 and 525,000 tonnes for soymeal and as much as 20,000 tonnes for soyoil.
All three major U.S. WHEAT varieties took losses despite poor growing conditions in many parts of the country.
Day one of the U.S. Wheat Quality Council’s tour of Kansas presented an average yield of 29.8 bushels per acre, almost 10 less than last year’s average. Damage due to drought, frost and hail was also reported.
Analysts estimate U.S. weekly export sales for the week ended May 11 to be between 50,000 to 150,000 tonnes for old crop and between 200,000 to 400,000 tonnes for new crop.
The Buenos Aires Grain Exchange is estimating Argentine new crop wheat output to be nearly 18 million tonnes.
