By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 9 (MarketsFarm) – The ICE Futures canola market was mostly stronger on Tuesday, setting fresh contract highs once again in many months.
Gains in Chicago Board of Trade soybeans and soyoil accounted for some of the spillover buying interest in canola, as the Chicago futures reacted to the latest supply/demand estimates from the United States Department of Agriculture that confirmed the tight U.S. soybean stocks situation.
Canola supplies are also on the tight side, adding to the firmer tone as the canola market works to ration demand.
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Extreme cold across much of the Prairies also underpinned the canola market, with farmer deliveries and rail movement hampered by the weather.
About 31,277 canola contracts traded on Monday, which compares with Monday when 26,866 contracts changed hands. Spreading accounted for 20,018 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, finding some support from the latest World Agriculture Supply and Demand Estimates (WASDE) report from the United States Department of Agriculture.
U.S. soybean ending stocks for the current crop year were pegged at 120 million bushels, which would be well below the previous year’s level. That was down by 20 million from the previous estimate and in line with trade expectations.
The global soybean carryout was down by a million tonnes on the month, at 83.4 million. Soybean production in both Brazil and Argentina were left unchanged at 133 million and 48 million tonnes respectively.
Brazil is in the midst of its harvest, and relatively favourable weather there kept a lid on the upside for soybeans.
CORN futures moved lower, as the USDA failed to cut ending stocks as much as anticipated.
U.S. corn ending stocks for the current marketing year were pegged at 1.5 billion bushels by the USDA. That was down by 50 million bushels from the January forecast, but still well above average trade guesses closer to 1.4 billion or lower.
Meanwhile, world corn ending stocks were raised by 2.7 million tonnes, at 286.5 million
The government agency left its estimates for corn production in Brazil and Argentina unchanged at 109 million and 47.5 million tonnes respectively.
WHEAT futures were also lower, taking some direction from corn.
The U.S. balance sheet for wheat was largely left unchanged. However, the USDA did lower its world wheat ending stocks forecast by nearly 9 million tonnes, pegging the global carryout at 304.2 million tonnes.
Concerns over cold temperatures across the U.S. Plains and the risk of winterkill provided some underlying support.
