Intercontinental Exchange (ICE) canola futures finished higher on Wednesday, having turned around from earlier declines.
Support for the Canadian oilseed came from gains in European rapeseed and Chicago soybeans. While Chicago soyoil and soymeal were lower, they came well away from earlier lows. Declines in Malaysian palm oil weighed on values. Strong advances in global crude oil prices spilled over into vegetable oils.
As Alberta and Saskatchewan experienced well above normal temperatures pushing towards 30 degrees Celsius today, Manitoba was left to contend with more moderate highs in the upper teens. A lack of rain in the immediate forecast has offered the opportunity for good harvest progress.
With the United States dollar retreating from 20-year highs today, the Canadian dollar was on the rise. The loonie advanced to 73.44 U.S. cents, compared to Tuesday’s close of 72.85
There were 39,811 contracts traded on Wednesday, which compares with Tuesday when 26,521 contracts changed hands. Spreading accounted for 24,670 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Nov 838.50 up 9.40
Jan 846.90 up 8.50
Mar 853.70 up 8.10
May 855.20 up 7.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly higher on Wednesday, turning around from earlier lows.
The USDA is scheduled to issue its quarterly stocks and small grains reports on Friday. The average trade guess puts soybean ending stocks at 243 million bushels, compared to 257 million a year ago.
Ahead of tomorrow’s USDA export sales report, the trade pegged soybean sales at 250,000 to 850,000 tonnes for the week ended Sept. 22.
ANEC reported that Brazil soybean exports are expected to be 3.82 million tonnes in September, with soymeal exports of 2.01 million tonnes.
CORN futures were higher on Wednesday, gleaning a little bit of spillover from wheat
The U.S. Energy Information Administration (EIA) said ethanol production for the week ended Sept. 23 averaged 855,000 barrels per day – the lowest amount since Feb. 26, 2021. The EIA reported ethanol stocks climbed 190,000 barrels to 22.7 million.
Ending stocks for U.S. corn are believed to be nearly 1.5 billion bushels. A year ago they were 1.24 billion bushels.
U.S. corn export sales are projected to be 250,000 to 800,000 tonnes.
The European Union reported its corn imports for 2021/22 were 6.65 million tonnes, up by more than 81 per cent from the previous year.
ANEC projected Brazil corn exports for September to total 7.13 million tonnes.
While Argentina remains dry, there is some rain in the long-range forecast.
WHEAT futures were stronger on Wednesday, due to the ongoing turmoil in Ukraine.
With the grain export agreement between Ukraine and Russia set to expire next month, Ukraine has requested an export corridor through Europe. Also, the referendum in the occupied territories reportedly voted overwhelmingly to join Russia. Ukraine and the West denounced the referendum as a sham.
U.S. wheat export sales are projected to be 175,000 to 500,000 tonnes.
U.S. wheat stocks are predicted to be 1.79 billion bushels versus 1.77 billion last year.
The National Oceanic and Atmospheric Administration (NOAA) estimated that nine to 15 inches of rain is needed to alleviate the drought in parts of the U.S. Midwest and Southern Plains.
A report said Russia has harvested about 95 per cent of its wheat area, reaping 101.5 million tonnes in bunker weight as of Sept. 27. That’s a jump of 37.3 per cent compared to this time last year. Russia’s barley harvest is said to be 23.8 million tonnes, up 31.5 per cent from a year ago.
Egypt, the world’s largest importer of wheat, has purchased 3.5 million tonnes since the start of the current fiscal year.
