By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was stronger on Tuesday, with chart-based positioning a feature as the nearby March contract settled above its 20-day moving average for the first time in nearly two months.
Gains in outside markets, including Malaysian palm oil and European rapeseed, provided underlying support. However, Chicago soyoil held near unchanged on the day, tempering the upside in the Canadian oilseed.
Forecasts calling for hot and dry weather in Argentina provided some support to the oilseed markets, according to a trader who noted that reports expanding biodiesel capacity in the United States were also underpinning values.
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There were an estimated 35,627 contracts traded on Tuesday, which compares with Monday when 40,207 contracts traded. Spreading accounted for 24,280 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved higher on Tuesday, seeing a continued correction off nearby lows as concerns over hot and dry weather forecasts in Argentina provided some support.
Meanwhile, Brazil’s soybean harvest is in its early stages and the uncertain production prospects there after the adverse growing season remained supportive. Many private forecasters have lowered their calls on the size of the country’s soybean crop.
Last week, the United States Department of Agriculture cut their call on Brazilian soybean production by four million tonnes, now pegging the crop at 157 million tonnes. However, many industry participants now expect production of under 150 million tonnes.
CORN held near unchanged, lacking any clear direction as values consolidate in a narrow range.
Brazil’s summer corn harvest is progressing, with seeding of the next crop running ahead of average. Planting was estimated at about five per cent, which compares with only one per cent at this time last year.
Meanwhile, crops in Argentina are in reasonably good shape, according to reports out of the country.
WHEAT was mixed, with chart-based positioning a feature.
Forecasts call for some beneficial moisture over the U.S. Southern Plains, with warmer temperatures limiting the risk of any damage to overwintering crops for the time being.
Early estimates from Agriculture Canada predict a two per cent decline in Canadian wheat plantings in 2024, at 26.5 million acres, but given normal weather conditions and a return to average yields total production is forecast to increase by four per cent on the year, to 33.3 million tonnes.
