By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 19 (MarketsFarm) – The ICE Futures canola market was stronger for the third-straight session on Thursday, as world equity and energy markets saw a modest correction amid the ongoing COVID-19 pandemic.
Gains in the Chicago Board of Trade soy complex also provided spillover support, although activity was choppy in the grains and oilseeds.
Recent weakness in the Canadian dollar contributed to the strength in canola, despite the relatively steady tone in the currency on Thursday.
About 27,880 canola contracts traded on Thursday, which compares with Wednesday when 20,203 contracts changed hands. Spreading accounted for 16,840 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, with soymeal leading the soy complex to the upside.
Stimulus measures being announced by many countries around the world to deal with the fallout of the COVID-19 pandemic helped underpin the equity and energy markets, which spilled into the grains and oilseeds.
Technical buying on expectations for increased export demand contributed to the bounce in soybeans, with the recent selloff deemed overdone despite ongoing uncertainty over the coronavirus.
Weekly United States soybean export sales of about 630,000 tonnes were up from the previous week.
CORN futures were stronger, seeing a correction off of the multi-year lows hit yesterday. Short-covering was a feature.
Gains in crude oil added to the firmer tone in corn, although concerns over declining ethanol demand did limit the upside potential.
The U.S. Department of Agriculture is set to release its prospective plantings report at the end of the month, and expectations for increased U.S. corn and soybean acres put some pressure on values as well.
WHEAT futures were higher, as the global pandemic has raised the demand for flour, pasta, and other staples.
Weekly U.S. wheat export sales of about half a million tonnes (old and new crop combined) were in line with trade expectations.
