By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 4 (MarketsFarm) – ICE Futures canola contracts were stronger on Tuesday, seeing a continued correction off of recently hit lows with chart-based buying a feature.
While traders remain cautious over the coronavirus outbreak in China, gains in the equity markets today were helping ease those concerns somewhat.
Advances in Chicago Board of Trade soyoil and other global vegetable oil markets were also supportive.
Statistics Canada releases its latest stocks of principal field crops report on Wednesday, Feb. 5, and any surprises in the data could sway the canola market. However, there is some uncertainty over how crops left unharvested this past fall will be accounted for in the data.
Read Also
North American Grain and Oilseed Review: Canola stronger on comparable oils
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Thursday, in gleaning support…
About 23,030 canola contracts traded on Tuesday, which compares with Monday when 21,286 contracts changed hands. Spreading accounted for 14,794 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, as the market continued to correct off of its nearby lows.
Solid monthly crush data contributed to the gains. The United States Department of Agriculture reported 184.7 million bushels of soybeans were crushed in December, which was a new record for the month. Soymeal production was up one per cent from the same month a year ago, but oil production was down due to lower yields. Soyoil futures were up on the day and meal posted losses.
Easing concerns over the coronavirus in China added to the day’s firmer tone. However, uncertainty over what the outbreak and resulting quarantines will mean for soybean demand going forward remained a bearish influence in the background.
The advancing Brazilian harvest also put some pressure on values.
CORN was higher on Tuesday, with solid demand from the ethanol sector behind some of the strength.
The USDA’s monthly grain crushing report showed corn use for ethanol of 479,214 tonnes in December, which was the highest level since August 2018.
WHEAT futures were mixed, with slight losses in Minneapolis spring wheat and gains in the winter wheats. Solid export demand and production issues elsewhere in the world provided support.
The USDA Ag Attaché released updated estimates on Australia’s crop, predicting the smallest wheat crop for the country in 12 years, at 15 million tonnes.
