Canola futures followed surging Chicago soybeans higher on Tuesday, hitting new contract highs.
Soybeans roared higher after today’s monthly supply-demand update from the USDA further reduced projected 2020-21 US soy ending stocks by 35 million bu from December to 140 million bu. If accurate, it will be the lowest US soybean ending stocks since 2013-14, when stockpiles dwindled to just 92 million bu. The USDA also trimmed the size of the 2020 US soybean crop.
But despite the increases in Chicago soybeans and soymeal, soyoil ended the day unchanged. Meanwhile, there were moderate gains in European rapeseed, while Malaysian palm oil was lower.
Gains in the Canada dollar helped to limit the advances in canola.
March canola jumped $14.10 to $686.90, May was $10.80 higher at $669 and July added $9.10 to $652.20.
Source: DePutter Publishing Ltd.
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