By Jade Markus and Dave Sims, Commodity News Service Canada
ICE Futures Canada canola ended stronger on Tuesday, gathering spillover support from gains in Chicago Board of Trade soybeans.
CBOT soybeans advanced, supported by data released by the United States Department of Agriculture earlier in the day.
Soybean exports for 2015/16 were revised higher by 35 million bushels to 1,795 million bushels, the USDA said.
Soybean ending stocks were trimmed by 20 million bushels to 350 million bushels, which is bullish.
However, projections for increased production in 2016/17 limited gains.
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The USDA pegs global oilseed production for 2016/17 at 536.4 million tonnes, up 2.6 million from last month, citing increased domestic soybean production.
Concerns about wetness in Western Canada also helped canola prices gain, as traders are keeping an eye on areas across the Prairies.
Canola has upside potential, analysts say, which could support the market in coming sessions.
About 13,366 canola contracts traded on Tuesday, which compares with Monday when 15,431 contracts changed hands. Spreading accounted for about 1,164 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Corn futures posted gains of four cents per bushel on Tuesday after the monthly report from the United States Department of Agriculture pegged domestic corn supplies at a smaller amount than most analysts had predicted.
The USDA’s World Agricultural Supply and Demand Estimates report pegged domestic corn stockpiles at 2.081 billion bushels (as of August 2017) which was lower than most analysts’ estimate of 2.189 billion bushels.
However, the USDA hiked its forecast for corn production in the US this fall, which helped limit the advances.
SOYBEAN futures rose 25 to 32 cents per bushel as the USDA slashed its estimate for the number of soybean stockpiles in 2015/16.
The market is still receiving some support from weather forecasts in the US Midwest that are calling for hot, dry conditions in a week’s time.
However, the USDA raised its forecast for US soybean production in the fall, which was bearish for values.
Soyoil finished 48 points higher, tracking advances in crude oil.
SOYMEAL futures rose, tracking soybeans.
Wheat futures on the Chicago Board of Trade finished eight cents per bushel higher as the USDA’s report predicted that world stockpiles of wheat wouldn’t be as high as initially thought.
The USDA also said that relatively low prices for US wheat could attract more buyers, especially from the livestock sector.
However, the USDA said domestic wheat output this year would hit 2.261 billion bushels which is higher than the analysts’ estimate of 2.155 billion.
– Grain sales in Argentina hit just under US$450 million last year, which is 40 per cent lower than the week before, according to the Center of Cereal Exporters.
– Officials with the European Union say they issued 31.3 million tonnes worth of soft wheat in the 2015/16 marketing year.
