By Glen Hallick, MarketsFarm
WINNIPEG, May 26 (MarketsFarm) – Intercontinental Exchange (ICE) canola futures were lower on Wednesday, due the positive aspects of the recent rains on the Prairies.
There has been an uptick in speculative selling as much needed moisture gives a temporary boost to the region’s canola crops. As well, growers are becoming more confident in their recently seeded crops and are more willing to sell any remaining canola they still possess.
Declines in the Chicago soy complex and European rapeseed also added pressure on canola values.
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At mid-afternoon the Canadian dollar was retreating, with the loonie at 82.53 U.S. cents compared to Tuesday’s close of 82.94.
Statistics Canada reported farm cash receipts for the first quarter of 2021 were up 15.5 per cent from a year ago at C$19.8 billion. On the Prairies, receipts were up by more than C$1 billion in Saskatchewan, with Alberta seeing an increase of over C$654 million and a gain of over C$444 million in Manitoba.
There were 21,320 contracts traded on Wednesday, which compares with Tuesday when 20,613 contracts changed hands. Spreading accounted for 11,136 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jul 862.30 dn 15.70
Nov 691.30 dn 6.00
Jan 689.70 dn 3.80
Mar 680.70 dn 2.50
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Wednesday, taking their cue from the weather.
Varying amounts of rain is in the forecast for much of the major growing areas in the United States.
Brazil’s soybeans are reported to be US$1 per bushel cheaper than those in the U.S.
A two-day strike in Rosario, Argentina will slow the country’s farm exports. Workers from 11 labour unions are protesting the slow pace of receiving COVID-19 vaccines. About 80 per cent of Argentina’s farm exports go through Rosario’s port.
CORN futures were higher on Wednesday, recovering a small portion of the previous day’s sharp declines.
The U.S. Energy Information Administration (EIA) reported ethanol production for the week ended May 21 was 1.01 million barrels per day. Ethanol stocks dropped to 18.98 million barrels, the tightest amount since December 2016.
The National Development and Reform Commission in China said it’s instituting price controls as a means to reduce commodity volatility. That led to sharp declines in CBOT corn on Tuesday.
WHEAT futures were lower on Wednesday, as weather conditions are largely conducive to crop development.
However, there has been some flooding in parts of Kansas and the U.S. Southern Plains. Crop disease could become a major concern with excessive moisture. Meanwhile, the Northern Plains are to return to hot, dry weather.
The International Grains Council issues its monthly supply and demand report on Thursday. The council is expected to project a record wheat crop in 2021/22.
The European Union said its wheat exports reached 23.7 million tonnes as of May 23. That’s a drop of 26.2 per cent from a year ago.
