By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures finished higher on Tuesday, in heavy trading that was quite choppy at times.
After several days of losses, there may been bargain hunting in canola that generated the turnaround.
Support for the Canadian oilseed also came from a stronger Chicago soy complex. However, European rapeseed eased back while Malaysian palm oil was down sharply on the day. Moderate upticks in global crude oil prices spilled over to the vegetable oils.
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A trader cautioned canola has little to underpin it especially when there’s that huge soybean crop just starting to flow out of South America.
The Canadian dollar improved at mid-afternoon Tuesday with the loonie at 74.63 U.S. cents compared to Monday’s close of 74.39.
There were 61,131 contracts traded on Tuesday, compared to Monday when 47,730 contracts changed hands. Spreading accounted for 45,452 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Mar 613.50 up 4.80 May 619.70 up 5.60 Jul 623.80 up 6.60 Nov 623.50 up 7.10
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, climbing more than 20 cents per bushel in the most active contracts in what was likely bargain hunting.
Reports said China has three to five cargos of United States soybeans that have been delayed due to higher than expected freight costs.
Another report stated an U.S. East Coast poultry producer has imported Brazil soybeans for crushing.
Dr. Michael Cordonnier of Soybean and Corn Advisor kept his calls on Brazil and Argentina soybean production this year at 149 million and 56 million tonnes respectively.
Brazil exporter group ANEC pegged the country’s soybean exports for January at 2.49 million tonnes – significantly better than the 950,000 last January. Soymeal exports were forecast to improve from 1.43 million tonnes last January to 1.76 million.
CORN futures were higher on Tuesday, caught up in the day’s positive sentiments.
Cordonnier held his estimates on Brazil and Argentina corn output at 114 million and 52 million tonnes respectively.
Brazil corn exports for January were projected to be 2.49 million tonnes, sharply lower than the 4.86 million a year ago.
South Korea purchased 198,000 tonnes of corn.
South Africa projected its planted corn area to expand from 6.39 million acres last year to 6.52 million in 2024. The country has often ranked among the top 10 corn growers in the world.
WHEAT futures were higher on Tuesday, with double-digit increases for the winter wheats.
In the state crop progress reports for winter wheat, Illinois climbed 14 points from December at 75 per cent good to excellent, Nebraska jump 21 at 69 per cent, Colorado was up two at 63 per cent, and North Dakota added 10 points at 60 per cent. Also, Kansas rose 11 at 54 per cent, South Dakota dipped one at 53 per cent, and Texas lost seven at 42 per cent.
The major U.S. growing areas are forecast to get above normal temperatures for upwards to the next two weeks.
Farmer protests in the European Union have spread into Belgium and Spain, adding to those already in France, Germany and Poland. Producers have been angry over stricter regulations and a lack of support from their governments.
South Korea bought 86,200 tonnes of U.S. milling wheat.
