North American Grain/Oilseed Review: Canola rises higher, soybeans up
Glacier FarmMedia MarketsFarm — The ICE Futures canola market maintained its positive momentum on Wednesday with plenty of support from vegetable oils.
Chicago soyoil, European rapeseed and Malaysian palm oil all made gains. However, crude oil was slightly above unchanged.
One analyst believes November canola could be making a run at C$600 per tonne, with the possibility of moving up to C$625/tonne.
At mid-afternoon, the Canadian dollar was up one-tenth of a United States cent compared to Tuesday’s close. The United States Federal Reserve announced today it cut its key interest rate by half a percentage point, its first cut in four years.
There were 42,048 canola contracts traded on Wednesday, which compares with Tuesday when 31,930 contracts changed hands. Spreading accounted for 25,360 of the contracts traded.
SOYBEAN prices at the Chicago Board of Trade (CBOT) showed some strength on Wednesday with the November contract rising to its highest point in 12 days.
Conab projected seeded area for 2024-25 Brazilian soybeans to increase by three per cent compared to last year at 47.4 million hectares.
Rains have fallen in southern parts of the country this week, but conditions in northern states will stay dry for the next seven to 10 days.
The Brazilian Chamber of Deputies passed the country’s “Fuels of The Future” bill last week which would increase the domestic soybean crush from 31 million tonnes in 2024 to 55.8 million in 2025 due to new biodiesel blending mandates.
ANEC projected September soybean exports from Brazil at 5.83 million tonnes, up 320,000 tonnes from last week’s estimate.
Despite a new 20 per cent import tax on edible oils, India’s consumption is still set to rise by two to three per cent this year.
WHEAT prices were steady to lower on Wednesday, marking the third straight day with no gains.
Winter wheat areas in western Kansas saw some rains over the past few days with more expected this week.
France’s ag ministry nearly halved its projected soft wheat export forecast to four million tonnes, 61 per cent less than the previous year.
SovEcon expects 48.1 million tonnes of Russian wheat exports in 2024-25, down from 52.4 million last year.
Wheat planting conditions in the Black Sea region will stay dry for the next 10 days.
The December CORN contract made the smallest of gains on Wednesday while staying within the US$4.05 to US$4.15 per bushel range for the third straight day.
The U.S. Energy Information Administration reported ethanol production at an average of 1.049 million barrels per day for the week ended Sept. 13, 310,000 less than the week before. Ethanol stocks rose 71,000 barrels at 23.785 million.
Ukraine’s corn harvest is six per cent complete, with early yields eight per cent less than last year.
Conab projected Brazilian corn exports to total 34 million tonnes in 2024-25, two million less than the previous year.
Brazil’s corn exports in September were estimated by ANEC to be 6.63 million tonnes, up 160,000 tonnes from last week’s estimate.