By Terryn Shiells, Commodity News Service Canada
Winnipeg, March 31 – The ICE Futures Canada canola market ended firmer on Tuesday, after the Chicago soybean market had a mostly positive reaction to the USDA’s latest report, analysts said.
The government agency pegged 2015/16 US bean acreage at 84.64 million acres, which was record large. Though, the estimate was also about a million acres smaller than anticipated.
The Canadian dollar was up slightly after dropping sharply Monday, but remained below the 79 cents US mark. The loonie still provided some support as the relative weakness kept canola looking attractive to exporters and crushers, brokers noted.
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Commercial demand remains steady, which was also bullish, as was the need to keep a weather premium in the market ahead of spring seeding.
However, a softer tone in outside oilseed markets, including Chicago soyoil, spilled over to weigh on canola.
The large global oilseed supply situation, as South America’s soybean crop is looking good, was also bearish.
About 18,353 contracts changed hands on Tuesday, which compares with Monday when 17,128 contracts traded.
Milling wheat, durum and barley futures were all untraded. Though, the Exchange moved wheat prices lower following Tuesday’s close.
Chicago soybean futures ended five to seven cents US per bushel higher on Tuesday, after having an erratic initial reaction to the USDA’s planting projections report, brokers said.
Planted area for US soybeans is expected to be a record large 84.64 million acres this spring. But, the figure was about a million acres smaller than what traders were anticipating.
The stocks report was fairly neutral, as March 1 stockpiles of soybeans were at 1.33 million bushels, while expectations called for 1.34 million bushels.
SOYOIL futures finished slightly softer, with weakness in outside vegetable oil behind some of the declines, analysts said.
SOYMEAL futures were firmer, supported by spreading against soyoil.
CORN futures in Chicago finished 14 to 18 cents US per bushel lower on Tuesday, reacting to a bearish USDA report, participants said.
The USDA pegged 2015/16 US corn acreage at 89.2 million acres, while pre-report guesses called for a figure closer to 88.7 million.
US stockpiles of corn were also larger than expected as of March 1, which was bearish. The USDA said stocks totalled 7.8 million bushels, with pre-report guesses averaging about 7.6 million.
WHEAT futures in the US closed sharply lower as well, giving back most of Monday’s rally. Values finished 14 to 20 cents US per bushel softer.
Weakness in corn values helped to weigh on prices, as did the strong US dollar index, analysts said.
Signs of lacklustre demand for US wheat, as stocks of the crop as of March 1 were above 2014 figures, were also bearish. Stocks of wheat in the US as of March 1 were at 1.12 million bushels, while pre-report guesses called for stocks of 1.14 million bushels. At the same time last year, stockpiles were at 1.06 million bushels.
The USDA’s planting report was fairly neutral for the wheat market, as acreage for all wheat came in at 55.4 million, slightly below expectations.
• India made a recent purchase of between 70,000 and 80,000 metric tonnes of wheat from Australia, according to reports.
• India’s wheat crop is maturing late, pushing back expected harvest dates to April 15 at the earliest. Normally, wheat crops are ready for harvest by the last week of March, officials say.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
