By Glen Hallick, MarketsFarm
WINNIPEG, Feb. 16 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were higher on Tuesday, as some contracts hit new highs. Support came from a sharp spike in Chicago soybeans.
Additional support came from tightening canola ending stocks, with the markets looking at price rationing.
Also, a trader said the funds have been “buying pretty much anything that moves,” which underpinned canola values.
With less than 16,000 remaining in open interest, the trader noted the March contract has little to do with canola prices.
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“It’s just a ‘video game’ now for the next few weeks as the buyers and the sellers try to jam it to each other,” he commented.
At mid-afternoon the Canadian dollar was higher and weighed on canola values. The loonie was at 78.83 U.S. cents after closing Friday at 78.67.
There were 22,364 contracts traded on Tuesday, which compares with Friday when 14,417 contracts changed hands. Spreading accounted for 11,406 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola May 709.20 up 8.20
Jul 675.70 up 7.60
Nov 573.60 up 6.50
Jan 574.70 up 6.70
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Tuesday, due to fresh news.
The National Oilseed Processors Association said 184.65 million bushels of soybeans were crushed in January. That’s a new record for January and the second most overall. The soyoil inventory was shade under 1.8 billion pounds.
The United States Department of Agriculture (USDA) reported soybean export inspections for the week ended Feb. 11 came to 809,574 tonnes. That brought the year-to-date to 50.08 million tonnes, which is 77.2 per cent ahead of this time a year ago.
The USDA will have its annual outlook conference this week, with the department releasing its initial forecast for planting intentions on Thursday. A survey by Bloomberg forecast soybean acres in 2021 to be 89.8 million, up by more than eight per cent from last year.
The soybean harvest in Brazil exceeded seven per cent completed, remaining well behind the average pace of nearly 20 per cent. However, there is a backlog of 10,000 trucks waiting to be unloaded at Brazil’s ports.
CORN futures were higher on Tuesday, catching spillover from the soy complex.
Corn export inspections for the week were 1.32 million tonnes. That brought the year-to-date total to more than 22.78 million tonnes, which is nearly 84 per cent ahead of this time a year ago.
The Bloomberg survey put U.S. corn acres this year at 92.9 million, up 2.3 per cent from 2020.
Corn planting in Brazil was pegged at eight per cent complete, which is far below the average of 33 per cent finished.
WHEAT futures were stronger on Tuesday, as recent weather battered the U.S.
The Arctic front that swept over much of the U.S. on the weekend generated speculation in the markets that there is a good deal more winterkill of wheat. Also, the cold and heavy snowfall has limited grain movements by rail and barge. The U.S. is on track for its coldest winter in 126 years.
The USDA reported wheat export inspections of 392,555 tonnes. The year-to-date was now approximately 17.41 million tonnes, roughly two per cent behind inspections this time last year.
Australia upped its estimate of wheat crop from 31.1 million tonnes to a record 33.3 million. With strong demand for wheat from China and Russia cutting back on its exports, Australia could increase its exports.
