The ICE Futures canola market climbed sharply on Tuesday, setting fresh contract highs in the process as speculative stops were hit on the way up.
Gains in Chicago Board of Trade soyoil and European rapeseed futures provided spillover support for the Canadian oilseed. Tight old crop supplies and the need to encourage acres this spring were also supportive.
News that the two sides in the labour dispute at Canadian Pacific Railway had agreed to binding arbitration, ending a two-day stoppage, was another bullish influence as CP Rail was the sole connection for a number of Prairie canola crushers.
About 20,422 canola contracts traded on Tuesday, which compares with Monday when 12,621 contracts changed hands. Spreading accounted for 7,004 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade held onto small gains on Tuesday, with strength in world vegetable oil markets behind some of the buying interest.
Uncertainty over the situation in Ukraine remained at the forefront of the grains and oilseeds, with a split vote in the European Union over banning Russian oil imports leading to some choppiness in the crude oil market.
Sunflower production in Ukraine is expected to be down considerably on the year, according to reports, with farmers focusing on grain production where they can.
The United States Department of Agriculture announced private export sales of 240,000 tonnes of soybeans to unknown destinations for delivery during the current marketing year.
Brazil’s soybean harvest is estimated to be just over two-thirds complete, which is slightly ahead of the year-ago pace.
A move by Argentina to raise export taxes on soyoil and soymeal remained supportive, with recent downgrades to the production estimates from the country also underpinning the U.S. futures.
CORN was mixed, with the nearby May contract down on the day and the deferred months all higher.
Farmers in Texas were making progress seeding corn, with 42 per cent of intended acres in the ground already, according to a report from the USDA.
Brazil’s second crop was also being seeded, with planting estimated at 98 per cent complete.
WHEAT had rallied in overnight activity, but that buying interest subsided and prices settled well off their session highs.
Forecasts calling more precipitation in the dry Southern Plains after recent rains were bearish.
While the lack of Ukrainian wheat exports remained supportive, analysts in the country estimated that they could still move 300,000 to 400,000 tonnes a month – which would be about a tenth of what could normally move.
