By Glen Hallick, MarketsFarm
WINNIPEG, March 12 (MarketsFarm) – ICE Futures canola contracts were stronger on Tuesday, as the market corrected itself following recent losses.
Bargain hunting and increases in soybean prices also provided support.
However, Canada’s ongoing difficulties with China, large old crop supplies and expectations for another big crop in 2019 tempered Tuesday’s gains.
The Canadian dollar rose to 74.81 U.S. cents by midafternoon Tuesday.
About 17,380 contracts were traded on Tuesday, which compares with Monday when 9,350 contracts changed hands. Spreading accounted for 12,430 contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, on comments that a United States/China trade deal would greatly benefit U.S. farmers.
In speaking about a potential trade agreement, U.S. Trade Representative Robert Lighthizer said U.S. agriculture would have open access to the Chinese market. Lighthizer also stated a deal with China will only be signed if the agreement is enforceable.
With half of Brazil’s soybean crop harvested, Conab revised its forecast of the country’s crop, bringing it down two million tonnes to 113.5 million tonnes. Initial estimates from several sources forecast Brazil’s crop to have been 122 million tonnes.
CORN futures were stronger, following wheat’s lead. This comes despite U.S. corn being reportedly more expensive than corn from South America or Ukraine.
Conab revised Brazil’s corn crop upward from 91.7 million tonnes to 92.8 million tonnes.
WHEAT futures leapt in trading on Tuesday, with gains from 14 to 24 cents per bushel in the Chicago, Kansas and Minneapolis wheat contracts.
A winter storm and heavy rains were forecast to hit parts of the U.S. Midwest on Tuesday. Already a heavy snow cover and a delayed start to spring have raised concerns over spring seeding. That acres won’t live up to expectations, which would help keep the Minneapolis futures well supported compared to winter wheats.
