By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 9 (MarketsFarm) – The ICE Futures canola market remained pointed higher on Wednesday, hitting fresh contract highs for the third-straight session as speculators continued to add to their long positions.
Ideas that canola was looking underpriced compared to other oilseeds, including European rapeseed, added to the firmer tone, according to participants. Canada’s tight supply situation was another supportive influence in the market.
However, a downturn in Chicago Board of Trade soybeans and soyoil tempered the upside in canola. General uncertainty amid the ongoing conflict in Ukraine also kept some caution in the market.
Read Also
Canadian Financial Close: Loonie retreats after central bank announcements
Glacier FarmMedia – The Canadian dollar stepped back on Wednesday after the Bank of Canada and the United States Federal…
About 23,257 canola contracts traded on Wednesday, which compares with Tuesday when 22,357 contracts changed hands. Spreading accounted for 8,104 of the contracts traded.
All three WHEAT markets in the United States posted limit-down losses in the most active months on Wednesday, seeing a continuation of Tuesday’s selloff amid ideas the recent rally was overdone.
While grain movement in the Black Sea remains hampered by the Russian invasion of Ukraine and resulting port closures, Ukraine announced yesterday that it still intended to issue export certificates.
The U.S. Department of Agriculture raised its forecast for world wheat ending stocks this crop year by 3.3 million tonnes, to 281.5 million. Exports out of both Russia and Ukraine were forecast to decline, with India and Australia taking up some of the slack.
The total U.S. wheat carryout for the year was pegged at 653 million bushels by the USDA in its monthly report. That was up by five million from the February estimate. Pre-report expectations had been for a 17 million bushel cut on the month.
SOYBEAN futures at the Chicago Board of Trade, retreating from earlier gains in response to the updated USDA numbers
Production estimates for both Brazil and Argentina were cut, as had been anticipated, with projected U.S. ending stocks revised lower, at 285 million bushels.
World soybean carryout came in at just under 90 million tonnes, a three percent drop from February.
CORN futures followed wheat lower, with losses in crude oil adding to the softer one.
The U.S. corn ending stocks forecast was down by 100 million bushels from the previous month, at 1.44 billion bushels. Total world ending stocks, at 300.97 million tonnes, were down on the on the month but slightly above trade expectations.
Good export demand provided some support, with flash sales of 100,000 tonnes to Colombia reported.
