By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 21 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday as activity resumed following the long weekend. Chart-based speculative buying was a feature with some stops hit on the way up.
A rally in Chicago soyoil and soybeans accounted for some spillover buying interest in canola, with a softer tone in the Canadian dollar also supportive.
Production uncertainty for Argentina’s soybean crop provided the catalyst for the gains in world oilseed markets today, after parts of the South American country were hit by frost over the weekend.
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About 43,235 canola contracts traded on Tuesday, which compares with Friday when 31,794 contracts changed hands. Spreading accounted for 27,416 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, boosted by South American weather concerns.
Argentina’s Cordoba province saw temperatures dip below freezing over the weekend, with reports of frost damaged soybeans in the region.
Meanwhile, farmers in Brazil are making progress bringing in their soybean harvest, but at 25 per cent complete the harvest is lagging last year’s pace when 33 per cent of the crop was off the fields by now. Excessive moisture in parts of the country has led to the delays.
Weekly United States inspections data showed 1.58 million tonnes of soybeans were shipped out of the country last week, which was down slightly from the previous week but still well above what moved during the same week a year ago.
CORN was also underpinned by the weekend weather in Argentina, although temperatures likely weren’t low enough to do much damage to the developing crop.
Weekly U.S. corn export inspections of 623,000 tonnes were up slightly from the previous week. However, year-to-date corn exports are running well behind the previous year’s pace.
WHEAT was mostly lower, with the largest losses in Chicago soft wheat.
Forecasts calling for much needed precipitation across parts of the dry Eastern Corn Belt pressured values as winter wheat crops need the moisture. However, the driest regions of the Southern Plains will likely miss out on most of the snow and rain.
Weekly U.S. wheat export inspections of 373,000 tonnes were off both the week-ago and year-ago pace, with total U.S. wheat exports during the marketing year to date of 14.6 million tonnes down by about half a million tonnes from the same time last year.
The ongoing conflict in Ukraine remains a feature in the background of the wheat market as it nears its one-year anniversary.
