By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 26 (MarketsFarm) – The ICE Futures canola market was stronger on Thursday, seeing a continuation of Wednesday’s correction off nearby lows as gains in outside markets provided spillover support.
Chicago soybeans and soyoil were higher on the day, underpinned by solid export demand and ongoing South American production uncertainty. European rapeseed and Malaysian palm oil futures were also stronger.
Chart-based speculative buying was a feature in the canola market, with both the March and May contracts holding above the psychological C$800 per tonne mark.
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Strength in the Canadian dollar and expectations for increased export competition from Australia tempered the advances.
About 45,184 canola contracts traded on Thursday, which compares with Wednesday when 35,481 contracts changed hands. Spreading accounted for 36,060 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved higher on Thursday, as strong economic data out of the United States brought some optimism into the agricultural commodity markets.
Supportive technical signals contributed to the gains in soybeans, with a double bottom pattern on the charts reportedly bringing in some speculative buying.
Solid export demand was also supportive with weekly U.S. soybean export sales of nearly 1.3 million tonnes coming in at the high end of expectations. The U.S. Department of Agriculture announced additional flash sales of 106,000 tonnes of soybeans to China this morning.
Recent rains in Argentina easing dryness concerns there did temper the advances, but more moisture will still be needed in the dry South American country.
CORN neared chart resistance to the upside with speculative positioning a feature.
Weekly U.S. corn export sales came in at 926,000 tonnes, which was in line with trade guesses.
Ethanol production data released yesterday showed just over a million barrels per day were being produced in the U.S. last week, which up slightly from the previous week. Stocks of the renewable fuel rose by 1.7 million barrels, to 25.1 million.
The Ukraine Grain Association forecast the country’s next corn crop at only 18 million tonnes, due to lost acres from the ongoing conflict. That would be well off the 2022 production around 27 million tonnes.
WHEAT was higher in all three markets, underpinned by solid exports and supportive technical signals.
Weekly U.S. wheat export sales of 561,000 tonnes were at the high end of trade expectations.
Much needed precipitation across dry areas of the Southern Plains this week did limit the gains, although forecasts for cold temperatures were supportive.
