By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 8 (MarketsFarm) – The ICE Futures canola market was mostly stronger on Monday, as a rally in the Chicago Board of Trade soy complex provided spillover support.
Many contracts hit new highs during the session, with bullish technical signals contributing to the gains.
Solid end user demand also remained supportive, as the canola market continues to work to ration that demand in the face of tightening supply projections.
Extreme cold warnings across the Prairies were another supportive influence, with farmer deliveries and rail movement likely to see a slowdown as the temperatures drop.
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About 26,866 canola contracts traded on Monday, which compares with Monday when 25,064 contracts changed hands. Spreading accounted for 21,362 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, with general strength in the global financial and energy markets spilling into the grains and oilseeds.
Positioning ahead of Tuesday’s monthly supply/demand report from the United States Department of Agriculture accounted for some of the activity, with pre-report trade guesses calling for a downward revision to the already tight U.S. soybean ending stocks projection.
Solid weekly export inspections added to the firmer tone.
However, forecasts calling for improving harvest weather in South America over the next two weeks tempered the upside.
CORN hit fresh contract highs, as bullish technical signals and positioning ahead of Tuesday’s report provided support.
U.S. corn ending stocks are also expected to tighten in Tuesday’s USDA report, as solid export demand from China in recent weeks will likely lead to an increase in overall exports during the marketing year.
Weekly U.S. corn export inspections, at nearly 1.6 million tonnes, were up on both the week and the year.
WHEAT futures were higher as well, with the biggest gains in the Chicago and Kansas City winter wheat contracts as cold temperatures across the U.S. Plains raise concerns over winterkill.
While the freezing temperatures were supportive, forecasts also call for more snow over the next week, which should provide some protection and aid the wheat crops overall.
Looming export taxes in Russia remained supportive, with more demand likely to shift to the U.S.
