By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market posted solid gains on Tuesday, settling higher for the first time in 2024 amid ideas values were due for a correction after hitting contract lows.
Chicago soyoil, European rapeseed and Malaysian palm oil futures were higher, lending spillover support to the Canadian oilseed.
Most of the activity was tied to speculative positioning, although end user bargain hunting was also likely uncovered by the recent declines.
Read Also
ICE canola turning around on Tuesday
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Tuesday morning, gaining strength from comparable…
There were an estimated 35,370 contracts traded on Tuesday, which compares with Monday when 33,276 contracts traded. Spreading accounted for 20,196 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted small gains on Tuesday, seeing a correction after recent declines. While soyoil was also higher, soymeal edged lower on the day which tempered the upside in beans.
Improving moisture conditions in Brazil remained a bearish influence in the background of the soybean market, although longer range outlooks for the country remain hot and dry.
The United States Department of Agriculture releases its monthly supply/demand estimates on Friday, with pre-report positioning a feature.
General expectations are for only minor revisions in the U.S. soybean supply/demand numbers, with any adjustments in South American production estimates likely to be followed closely. While general expectations are for Brazilian soybean production to be revised down from earlier estimates, Argentina’s crop will likely be larger.
CORN futures were also due for a correction after recent declines, with strength in crude oil also supportive.
However, expectations that Friday’s report will show large corn supplies weighed somewhat on prices.
WHEAT moved higher, as fresh tender activity from Egypt – the world’s largest wheat importer – lent some strength, despite the fact U.S. wheat is unlikely to make up any of the business.
Cold temperatures in the Black Sea region were raising concerns for winter wheat crops there, while freezing temperatures in the U.S. forecasts were also supportive. However, recent snowfall across much of the U.S. growing regions should limit the damage.
Friday’s USDA reports will include winter wheat seedings, with a slight decline in overall U.S. winter wheat area from the 36.7 million acres planted last year expected.
