By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 3 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Tuesday, as adverse weather and harvest delays in parts of Western Canada provided support.
In addition to the delay, the cool and wet weather – including snow – raises concerns over quality downgrades for the final quarter of the crop still left to be harvested, according to participants.
However, the upside in canola was limited, as total production is still expected to be large and end users had little reason to bid up the market given the ample visible supplies.
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Chicago Board of Trade soyoil was higher, which provided additional spillover support for canola. However, soybeans ended lower in the US.
The Canadian dollar was held relatively steady, providing little direction.
About 18,637 canola contracts traded on Tuesday, which compares with Monday when 24,085 contracts changed hands. Spreading accounted for 4,884 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
Soybeans settled with small losses on Tuesday, after posting gains for most of the session.
The US soybean harvest was 22 per cent complete as of this past Sunday, according to the latest USDA report, which was slightly behind average for this time of year.
However, rising US yield projections weighed on values, keeping the bias lower at the close.
Improving moisture conditions in Brazil were also bearish, as farmers there are just getting started seeding their next crop.
Seasonal harvest pressure also weighed on corn. The US corn crop was 17 per cent harvested in the latest weekly report, which was well off the five-year average of 26 per cent done.
While the slower harvest was somewhat supportive, the delays were also seen as a sign that yields may be larger as the crop gets a longer time to develop.
Chinese markets are closed this week for an annual holiday, limiting some of the activity in the grains and oilseeds.
Wheat was mostly higher, seeing a bit of a correction after moving lower yesterday.
The US winter wheat crop was 41 per cent seeded as of this past Sunday, according to the latest USDA report. That’s only two points behind the average for this time of year.
However, the technical signals were still pointing lower, which limited the advances. Rising Russian production estimates also weighed on prices.
