By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were higher for a second day on Wednesday. A trader said canola has returned to the highs set in February.
That momentum depends on what the Canadian Grain Commission says in its coming weekly and monthly reports, he said. Should canola exports remain strong, especially those to China, and domestic use stay ahead of last year’s pace, then demand rationing will kick in.
However, July canola is still likely to make the climb to C$700 per tonne if demand were to wane just more slowly, he added.
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The July contract continued to be well above its major moving averages, further underpinning canola values.
Gains in Chicago soybeans and soymeal, along with those in Malaysian palm oil and most European rapeseed contracts lent support to canola. Declines in crude oil tried to limit the extent of the increases.
The Canadian dollar fell back on Wednesday afternoon with the loonie dropping to 71.98 U.S. cents compared to Tuesday’s close of 72.32.
There were 42,029 contracts traded on Wednesday, compared to 43,828 on Tuesday. Spreading accounted for 21,414 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola May 676.00 up 3.20 Jul 682.30 up 2.80 Nov 652.90 up 2.40 Jan 658.30 up 2.00
SOYBEAN futures at the Chicago Board of Trade were higher on Wednesday, but soymeal shed its gains to finish lower.
The equity and futures markets saw relief after United States President Donald Trump stated he doesn’t have plans to fire Federal Reserve Chair Jerome Powell. Trump also said tariffs between the U.S. and China could be substantially reduced if a trade deal is reached.
India said it will increase its palm oil imports following a five-month lull. Imports are expected to climb from nearly 385,000 tonnes per month currently, to 500,000 in May, then to 600,000 come June.
CORN futures were lower on Wednesday, pulled down by declines in crude oil and U.S. wheat.
Planting progress is to be mixed this week, with little being seeded in regions that received heavy rains, and more acres sown in the areas that got far less rain.
The U.S. Energy Information Administration reported average daily ethanol production for the week ended April 18 was up 21,000 barrels per day. That raised output to 1.03 million BPD. Ethanol stocks dropped 1.33 million barrels at 25.48 million.
Soybean and Corn Advisor’s Michael Cordonnier raised his call on Brazil’s corn harvest by three million tonnes to now 125 million. Also, he upped his estimate on the Argentina corn harvest by two million tonnes, now at 48 million.
WHEAT futures were lower on Wednesday, due to the prospect of good seeding progress for spring wheat.
In international purchases, South Korea bought 50,000 tonnes of U.S. milling wheat, while Jordan issued a tender for 120,000 tonnes of milling wheat.
