By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 31 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Tuesday, with the largest gains in the nearby November contract as participants exited the front month ahead of its expiry.
Continued weakness in the Canadian dollar accounted for some of the strength in canola, as the currency traded at its lowest levels relative to its U.S. counterpart in three months.
Speculators were noted buyers, adding to their net long positions, according to participants.
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Ongoing concerns over unharvested acres in northern Alberta were also supportive.
However, the harvest is complete across most of Western Canada, and farmer selling kept a lid on the upside. Soybean futures at the Chicago Board of Trade settled near unchanged, providing little direction.
About 23,254 canola contracts traded on Tuesday, which compares with Monday when 24,924 contracts changed hands. Spreading accounted for 17,270 of the contracts traded.
Soybean futures at the Chicago Board of Trade settled within a penny of unchanged on Tuesday, lacking any clear direction as the market saw some consolidation ahead of the month end.
The U.S. soybean harvest was 83 per cent complete as of this past Sunday, according to the weekly USDA report. That was right in line with expectations and the five-year average.
Ideas that yields were coming in below earlier estimates in the later harvested fields were somewhat supportive.
Forecasts calling for some much needed rain in Brazil kept a lid on the bean market. About a third of Brazil’s soybean crop was planted as of last Thursday, which was off the average pace of about 40 per cent done.
Corn prices were down on the day, with yield estimates generally beating expectations despite the slow harvest pace.
The US corn harvest was 53 per cent complete in the latest weekly report, which was in line with expectations, but well off the 72 per cent average for this time of year. With the soybean harvest winding down, farmers are turning more attention to the corn harvest and the pace is expected to pick up.
Wheat was lower on the day, with chart-based selling a feature as some stops were hit on the way down.
The US winter wheat crop was 84 per cent seeded in the latest weekly report, which was in line with expectations. The crop in the ground was rated 52 per cent good-to-excellent, which compares to last year when 58 per cent of the U.S. winter wheat was in the top two categories.
