By Terryn Shiells, Commodity News Service Canada
Winnipeg, March 31 – ICE Futures Canada canola contracts were weaker on Monday, maintaining the losses seen earlier in the session as the USDA’s planting intentions report was bearish for new crop oilseeds, analysts said.
The USDA pegged 2014/15 US soybean acreage at a record high 81.5 million acres, about 400,000 acres larger than expected and above the 76.5 million acres planted last spring.
The upswing in the value of the Canadian dollar, the large Canadian supply situation and a recent pickup in farmer selling, further undermined values.
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Renewed concerns about logistics problems in Western Canada, due to the return of cold weather this week, also weighed on prices.
However, the USDA also confirmed tight old crop US soybean stocks as of March 1, which helped to limit the losses.
Continued ideas that canola is undervalued compared to other oilseeds kept a firm floor under the market, as did steady commercial demand.
About 13,517 canola contracts were traded on Monday, which compares with Friday when 20,203 contracts changed hands. Spreading accounted for 9,280 of the trades.
Milling wheat, durum and barley futures were untraded, though wheat prices were adjusted slightly after the close.
SOYBEAN futures at the Chicago Board of Trade closed mixed, with old crop futures moving up sharply and new crop values moving lower. The market finished anywhere from three cents US a bushel lower to 28 cents higher.
Old crop prices moved up sharply after the USDA confirmed tight nearby supplies of US soybeans. Stocks as of March 1, 2014 came in at 992 million bushels, down from 998 million at the same time last year. Continued strong demand for US supplies was also bullish for old crop contracts.
New crop futures moved lower as the USDA pegged planted acreage of US soybeans this spring higher than expected. US farmers are expected to plant a record large 81.5 million acres of soybeans, about 400,000 acres larger than anticipated and above the 76.5 million planted last spring.
SOYOIL futures were mostly lower, as larger than expected US acreage for 2014/15 put downward pressure on the market.
However, spillover support from the sharply higher old crop soybean market tempered the declines, brokers said.
SOYMEAL futures finished mixed, reacting to the USDA’s stocks and planting intentions reports which were bearish for new crop soybeans and products, and bullish for old crop.
CORN futures in Chicago settled six to eleven cents a bushel higher on Monday, reacting to a bullish USDA report, traders said.
US farmers plan to seed 91.7 million acres to corn this spring, falling below expectations of around 93 million and to 95 million planted last year, the USDA said.
The USDA also pegged March 1, 2014 stocks of US corn at 7 billion bushels, which was below expectations of 7.1 billion bushels.
However, profit taking at the highs tempered the gains, participants said.
WHEAT futures in the US were slightly higher, with Minneapolis, Chicago and Kansas City futures posting gains of one to six cents US per bushel.
Spillover support from the gains seen in corn was bullish for US wheat futures. Lower than expected acreage estimates for US spring wheat were also supportive.
However, larger than expected US stocks as of March 1 limited the upside. According to the USDA, there were 1.06 billion bushels of US wheat in the US as of March 1, 2014, beating expectations of 1.03 billion bushels.
Reports of improving weather conditions in US winter wheat growing areas were also bearish.
• According to the USDA, US farmers plan to seed 55.8 million acres of wheat this year, below expectations of 56.3 million.
• Grain exports out of Russia are reported as totalling 20.3 million tonnes this year, up 44 per cent from a year prior, Russia’s Agriculture Ministry said.
• France’s winter wheat crop is rated as 75 per cent in good to very good condition, up 9 points from the year prior, FranceAgriMer said.
