By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, March 31 – THE ICE Futures Canada canola market finished higher on Thursday, taking strength from gains in Chicago Board of Trade soyoil.
The USDA predicted US farmers will plant 82.2 million acres of soybeans, which is down from last year’s figure of 82.6 million acres and slightly supportive for the market.
Crude oil was also higher which helped to underpin values.
Commercial buying has been steady.
Crush margins declined yesterday, according to a Winnipeg-based trader.
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“The crush lost C$8 to C$9 dollars yesterday, depending on the month,” he said.
Losses in Malaysian palm oil limited the gains.
South America’s large soybean supply is finding its way to market which was bearish for canola.
Around 18,663 canola contracts traded on Thursday, which compares with Wednesday when around 21,172 contracts changed hands. Spreading accounted for about 6,596 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed about two cents per bushel higher on Thursday, as the United States Department of Agriculture (USDA) released its prospective plantings and grain stocks reports.
Seeded soybean area is expected to be slightly behind last year’s pace, which provided some support, as many analysts had expected an increase.
Soybean planted area for 2016 is estimated at 82.2 million acres, down less than one per cent from last year, the USDA said.
However, high stockpiles of the commodity limited gains on Thursday.
Soybean stocks are up 15 per cent from year-ago levels.
SOYOIL prices settled stronger on Thursday.
SOYMEAL closed weaker on Thursday, pressured by weakness in corn, and slower export sales.
CORN futures closed seven to sixteen cents per bushel lower on Thursday as the USDA expects farmers to increase the commodity’s seeded area this growing season.
Corn’s planted acreage is expected to be up six per cent from 2015 at 93.6 million acres, which is bearish.
Stocks of corn were also up from year-ago levels, which further pressured prices.
Corn stocks in all positions on March 1, 2016, totalled 7.81 billion bushels, up one percent from March 1, 2015, the USDA said.
WHEAT closed seven to nine cents per bushel stronger on Thursday as USDA data shows a large reduction in the amount US farmers will plant this year. All wheat acreage will be down nine per cent at about 49.6 million acres, according to the USDA.
Winter wheat seeding was also lower, which further advanced prices.
However, high stockpiles limited some gains on Thursday.
All wheat stored in all positions on March 1, 2016 totalled 1.37 billion bushels, which is a 20 per cent increase from last year, the USDA said.
– Indonesia bought 80 thousand metric tonnes of wheat from Argentina, market watchers say.
– Russian wheat prices will likely remain flat in the 2016/17 growing season, according to reports out of the country.
