IKAR in Mass and Industry Media

North American Grain/Oilseed Review: Canola hits highest levels in a week

producer.com

WINNIPEG, Aug. 16 (MarketsFarm) – The ICE Futures canola market hit its strongest levels in just over a week on Wednesday, as gains in outside markets provided spillover support.

Chicago soyoil, European rapeseed and Malaysian palm oil futures were all stronger on the day.

Bullish chart signals contributed to the gains in canola, as prices continued to recover off nearby lows while moving above some key moving averages.

However, a lack of fresh weather concerns across Western Canada and the looming harvest tempered the upside.

The Canadian dollar was softer, dipping below 74 U.S. cents.

About 24,611 canola contracts traded on Wednesday, which compares with Tuesday when 27,545 contracts changed hands. Spreading accounted for 11,698 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, taking back Tuesday’s losses as gains in world vegetable oil markets provided support.

Crushers in the United States processed a record 173.3 million bushels of soybeans in July, coming in two million bushels above average trade guesses. That compares with 165 million the previous month and was up by about 3.1 million from July a year ago.

Soyoil stocks in the country tightened by nearly 10 per cent from the previous month despite the increased production.

CORN was higher, with chart-based positioning a feature as the market recovered off Tuesday’s lows amid ideas the losses were overdone.

Hot Midwestern weather was also supportive, although rains in the long-range outlooks limited the weather-related buying.

Weekly ethanol data showed a small increase in production of the renewable fuel in the U.S., at 1.069 million barrels per day. Ethanol stocks up by about half a million barrels, at 24.435 million barrels.

WHEAT was steady to higher, as reports of fresh Russian attacks on Ukrainian grain handling facilities along the Danube River provided support. However, grain continues to find its way out of the country.

Russia’s wheat crop was estimated at 89.5 million tonnes by IKAR, up by 1.5 million from an earlier forecast.

Seasonal harvest pressure kept a lid on the upside, as the winter wheat harvest nears completion and about a quarter of the U.S. spring wheat crop is off the fields.

https://producer.com/market_update/north-american-grain-oilseed-review-canola-hits-highest-levels-in-a-week/

17.08.23

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