By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 6 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, as tight supplies and the need to ration demand were especially supportive for the old crop months.
Dry weather and mounting drought concerns across the Prairies were also supportive, although expectations for increased seeded area this spring tempered the advances in the new crop months.
Gains in outside markets, including Chicago Board of Trade soyoil and European rapeseed futures, were also supportive.
France’s Strategie Grains lowered their forecast for the European rapeseed crop this year to 16.8 million tonnes. That compares with an earlier estimate of just over 17 million tonnes. If realized, production would still be up from the 16.25 million tonnes grown in 2020 when dryness conditions cut into yields.
About 31,637 canola contracts traded on Tuesday, which compares with Monday when 14,943 contracts changed hands. Spreading accounted for 18,606 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, as global demand for vegetable oil helped soyoil post solid gains that spilled into the rest of the soy complex.
Brazil’s soybean harvest was estimated at 78 per cent complete by AgRural. That was only five points off of last year’s pace at this time, but logistics issues continue to hamper exports out of the country which kept soybean futures well supported.
Attention in the markets is turning to spring planting in the United States, with current price spreads indicating that some area could shift from beans to corn.
CORN was mixed, with gains in the front months and a softer tone in the more deferred positions.
The U.S. corn crop was two per cent seeded as of this past Sunday, according to the first weekly U.S. Department of Agriculture crop progress report of the year. That was in line with 2020, but slightly off average expectations closer to three per cent.
WHEAT futures were mixed on the day, with gains in Minneapolis spring wheat and losses in the winter wheats.
The U.S. winter wheat crop was rated 53 per cent good to excellent. That was in line with expectations, but well off the 62 per cent good to excellent rating seen at the same time last year.
The country’s spring wheat crop was three per cent seeded, which was slightly ahead of the two per cent average. Dryness in the key spring wheat growing northern states has helped farmers get on their fields early, but was also raising concerns over possible yield losses.