The ICE Futures canola market was mostly higher at Thursday’s close, recovering from earlier losses in most months. Only the nearby March contract was still lower at the final bell, with intermonth spreading behind some of the weakness there as investors roll out of the front month.
Losses in Chicago Board of Trade soyoil futures and a softer tone in crude oil put some pressure on canola during the session. However, soyoil finished well off its session lows while soybeans held onto small gains on the day.
Ongoing concerns over tight canola supplies and the need to ration demand continued to underpin the market, although end-users are thought to be well covered for the time being with basis levels softening in the countryside.
About 15,438 canola contracts traded on Thursday, which compares with Wednesday when 21,029 contracts changed hands. Spreading accounted for 10,188 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved to both sides of unchanged in choppy activity on Thursday, but managed to settle with small gains.
The United States Department of Agriculture reported weekly U.S. soybean export sales of 1.3 million tonnes of old crop business and an additional 1.5 million tonnes for delivery during the new crop year.
Private daily sales of 132,000 tonnes to unknown destinations were also reported this morning.
The International Grain Commission released updated production estimates, lowering their forecast for world crop by 15 million tonnes to 353 million, due largely to dryness in South America.
CORN also finished with small gains after a choppy trading session.
Weekly U.S. corn export sales of 820,000 tonnes of old crop business and an additional 113,500 tonnes of new crop were in line with expectations.
World corn production was revised slightly lower by the IGC, down four million tonnes from their last estimate to 1.203 billion tonnes.
WHEAT posted solid gains with the biggest advances in the winter wheats amid ongoing dryness concerns for the U.S. crop.
Weekly U.S. wheat export sales came in at about 130,000 tonnes of old and new crop business combined, with the bulk of that for movement during the current marketing year.
The Russia/Ukraine situation remained at the forefront of the wheat market, as the two countries are major wheat exporters.
