By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 11 (MarketsFarm) – The ICE Futures canola market steady to higher on Thursday, with the largest gains in the front months amid ongoing concerns over tightening old crop supplies.
The widening of the old/new crop spread was a feature, with expectations for increased canola area this spring tempering the advances in the more deferred months.
Gains in Chicago Board of Trade soybeans added to the firmer tone in canola, although soyoil ended near unchanged.
While canola continues to trade near multi-year highs, prices remain relatively attractive compared to other oilseeds, according to a broker.
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About 27,446 canola contracts traded on Thursday, which compares with Wednesday when 21,376 contracts changed hands. Spreading accounted for 14,592 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, seeing a modest correction after speculative long-liquidation weighed on prices on Wednesday.
Weekly United States soybean export sales of 804,000 tonnes for movement during the current marketing year came in at the high end of trade expectations, providing some support. New crop sales of 178,000 tonnes were also reported.
However, soyoil sales were disappointing, with cancellations of previous business to Guatemala more than offsetting any new business to end up with a small net cancellation.
CONAB, Brazil’s agricultural ministry, raised their estimate for the country’s soybean crop slightly – now pegging it at 133.8 million tonnes.
CORN was also due for a correction after recent losses, with the market posting small gains on the day.
Weekly U.S. corn export sales of 1.46 million tonnes were in line with trade expectations.
CONAB pegged Brazil’s corn crop at 105.5 million tonnes, which was up by 3 million from an earlier forecast.
WHEAT futures ended with small losses, seeing follow-through selling on recent declines.
Weekly U.S. wheat export sales of 591,000 tonnes came in above market expectations, providing some support.
The recent cold snap across the U.S. Plains was also somewhat supportive, although the extent of any damage to winter wheat crops won’t be known for some time.
