WINNIPEG, Nov. 10 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were sharply higher on Tuesday, hitting three-year highs.
Canola was bolstered by strong gains in Chicago Board of Trade (CBOT) soybeans. Lowered production numbers for Chicago soybeans pulled nearby contracts higher by over 35 cents, while December soyoil contracts were up by about half of a penny per pound on the day.
Slight losses in the Canadian dollar were also supportive of canola prices, as the loonie was around 76.7 U.S cents after hitting two-year highs yesterday.
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By Glen Hallick Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures were on the rise late Tuesday morning,…
On Tuesday, 38,448 contracts were traded, which compares with Monday when 19,201 contracts changed hands. Spreading accounted for 22,454 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Tuesday, hitting new contract highs following the World Agriculture Supply Demand Estimates (WASDE) report from the United States Department of Agriculture (USDA).
The US soybean crop is projected at 4.17 billion bushels, which is 98 million bushels lower than what the USDA estimated in last month’s report. It’s also at the lower end of trade expectations.
The report also cut yield estimates by 1.2 bpa to 50.7 bpa, which was more than expected. The agency said lower yields were reported in major soybean growing states, including Illinois, Iowa, Indiana, Ohio and Nebraska.
The production change resulted in a 100 million bushel decline in new crop US soybean ending stocks. That brings ending stocks to 190 million bushels, which is a six-year low.
CORN futures were also stronger today as a result of the latest supply and demand estimate.
Average corn yields were reduced by 2.6 bushels per acre from last month’s report, coming in at 175.8 bpa. Harvested acres remain at 82.5 million acres, which lowered 2020 US corn production to 14.5 billion bushels. That’s a 215 million bushel decline from the October report, putting total corn supply at 16.5 billion bushels.
This morning, the USDA announced a sale of 130,000 tonnes of corn, purchased by South Korea.
WHEAT futures were higher on Friday, though wheat production numbers were unchanged from last month’s report at 1.826 billion bushels. Average yield was also left at 49.7 bpa, with acreage still forecast for 44.3 million acres planted.
The agency trimmed U.S. wheat ending stocks to 877 million bushels, which was in line with pre-report analyst estimates, but is the lowest in six years. That drop was attributed to higher usage rates for food and seed.
