By Glen Hallick
Glacier FarmMedia – Intercontinental Exchange canola futures closed lower on Wednesday, getting pressure from losses in Chicago soyoil, MATIF rapeseed and Malaysian palm oil.
Increases in crude oil helped to temper further declines in the vegetable oils.
A trader said canola turned lower, he continued, because prices were beginning to dissuade purchases by China. The trader placed resistance for the May canola contract at C$680 per tonne.
He said the spreads were a major feature today, accounting for the large volumes of activity, noting there was a great deal of rolling out of the March contract.
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With today’s losses, May canola remained a little shy of its 200-day moving average.
The Canadian dollar was lower on Wednesday afternoon, with the loonie at 73.73 U.S. cents compared to Monday’s close of 73.83.
There were 134,268 contracts traded on Wednesday, compared to 78,435 on Tuesday. Spreading accounted for 97,612 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change
Canola Mar 662.70 dn 4.60
May 674.10 dn 3.90
Jul 682.90 dn 2.30
Nov 674.90 dn 0.30
SOYBEAN futures at the Chicago Board of Trade were higher on Wednesday, due to continued support from yesterday’s supply and demand report.
Ahead of Thursday’s export sales report from the United States Department of Agriculture, trade guesses placed old crop soybeans at 300,000 to 1.10 million tonnes, and zero to 100,000 tonnes of new crop.
Soymeal export sales are expected to be 200,000 to 450,000 tonnes and soyoil is to range from net reductions of 10,000 tonnes to net sales of 16,000.
Heavy rains in the Brazilian state of Mato Grasso have raised concerns about the quality of its soybeans.
ANEC estimated Brazil’s February soybean exports to be 11.71 million tonnes.
CORN futures dipped on Wednesday, unable to find traction.
The USDA announced a private sale for 230,560 tonnes of old crop corn to unknown destinations.
For weekly export sales, expectations range from 600,000 to 1.10 million tonnes of old crop corn and zero to 100,000 tonnes of new crop.
U.S. ethanol production averaged 1.11 million barrels per day, up 154,000 BPD for the week ended Feb. 6. Stocks added 111,000 barrels at 25.25 million.
ANEC raised its projection for Brazil’s February corn exports by 160,000 tonnes at about 953,200 tonnes.
WHEAT futures were higher on Wednesday, as U.S. farmers are said to be reluctant sellers.
Projections for wheat export sales came to 200,000 to 500,000 tonnes of old crop and zero to 75,000 tonnes of new crop.
France cut 300,000 tonnes from its call on its 2025/26 soft wheat exports outside of the European Union at 7.2 million. Ending stocks were raised 250,000 tonnes at 3.05 million.
