By Dave Sims, Commodity News Service Canada
Winnipeg, March 8 (CNS Canada) – The ICE Futures Canada canola complex finished slightly lower on Thursday in choppy trading.
The USDA pegged the Argentine crop at 47 million tonnes, which compares with last year’s crop of 57.8 million. The canola market initially dipped when the report was released due to technical selling, however bargain hunters quickly swooped in and took the market higher where it chopped up and down within a narrow range. Traders then took profits shortly before the close.
Losses in U.S. soybeans and soyoil undermined prices and there are expectations of a large canola crop this spring.
The USDA hiked its estimate for soybean stocks in the U.S., which dragged on values.
However, weakness in the Canadian dollar, relative to its U.S. currency was supportive for the market.
The soybean market finished narrowly mixed on Thursday.
Downward revisions to the crop in Argentina were supportive, although many traders expected that heading into the report, so the results were largely baked into the market.
The USDA pegged U.S. stockpiles of soybeans at 555 million bushels, which was higher than last month’s estimate.
Soybean exports from the U.S. have been on the sluggish side.
Corn futures recorded sharp gains after the USDA pegged Argentina’s corn crop at 36 million tonnes. That was lower than last month’s estimate and also much lower than last year’s crop of 41 million tonnes.
U.S. stockpiles of corn are down to 2.13 billion bushels, well below the previous estimate of 2.35 billion.
The agency raised its estimate for Brazil’s corn crop to 94.5 million tonnes.
Chicago wheat futures ticked slightly higher in choppy trading.
The USDA pegged ending stocks in the U.S. at 1.03 billion bushels, which was slightly higher than the previous estimate. Global stockpiles also increased slightly.
Estimates for Russian exports were raised from 36 million tonnes to 37.5 million, which was bearish.