Source: Canadian Cattlemen
By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 24 (MarketsFarm) – The ICE Futures canola market was mixed on Wednesday, with sharp gains in the old crop contracts and a steadier tone in the new crop positions.
Gains in Chicago Board of Trade soybeans and soyoil provided some spillover support for canola, with concerns over tight old crop supplies also supportive.
Unconfirmed rumours that at least one or more Canadian crushers had bought Ukrainian canola led to some volatility in the futures. If true, some traders said the move could be seen as bearish as it would highlight that Canadian canola is too expensive. However, some analysts also made the case that any imports would highlight Canada’s supply tightness.
About 24,012 canola contracts traded on Wednesday, which compares with Tuesday when 23,319 contracts changed hands. Spreading accounted for 13,568 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, with positioning ahead of next week’s acreage report from the United States Department of Agriculture behind some of the activity.
Solid global demand for vegetable oil accounted for much of the strength in soybeans, amid a renewed push towards biofuels in the U.S. under the Biden administration.
While Brazil’s soybean harvest is making some progress, congestion at the country’s ports continues to hamper export movement out of the country.
The USDA’s planting intentions report will be released on March 31, and general expectations are for an increase in both soybean and corn acres on the year at the expense of unseeded land, but the extent of any changes remains to be seen.
CORN was mixed, although the bias was higher in the most active months as the grain needs to keep pace with soybeans in order to draw in acres this spring.
Seeding delays in Brazil and a mixed start to seeding in the southern U.S. were somewhat supportive.
WHEAT futures were lower, with improving moisture conditions in a number of wheat growing regions of the world weighing on prices.
Strength in the U.S. dollar internationally was also bearish, as it makes U.S. wheat more expensive for export customers.