By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 12 (CNS Canada) – ICE Futures Canada canola contracts hit fresh two-month lows on Tuesday, as losses in Chicago Board of Trade soybeans and bearish technical signals weighed on values.
Chart-based selling accounted for much of the weakness, as fund traders continued to liquidate their dwindling long positions, according to a broker.
The USDA’s monthly supply/demand report was also somewhat bearish for CBOT soybeans, as the agency cut projected exports and raised its ending stocks forecast for the commodity.
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The January canola contract briefly traded below the C$500 per tonne mark on Tuesday, but managed to settle right above that psychological chart support.
About 33,781 canola contracts traded on Tuesday, which compares with Monday when 32,812 contracts changed hands. Spreading accounted for 22,882 of the contracts traded.
Soybean futures at the Chicago Board of Trade ended lower on Tuesday, as the market reacted to the USDA’s monthly supply/demand report.
The USDA raised its ending stocks forecast for U.S. soybeans by 20 million bushels from its last estimate, while lowering expected exports. At 445 million bushels, the carryout was in line with trade expectations, but well above the 301 million bushel ending stocks seen the previous year.
Relatively favourable South American crop conditions put added pressure on beans.
Chicago corn futures held near unchanged, but settled with small losses.
Projected U.S. corn ending stocks were lowered slightly, to 2.437 billion bushels, as the USDA raised its expectations for demand from the domestic ethanol sector.
World corn carryout, meanwhile, was raised to 204.1 million tonnes. However, that would still be more than 20 million tonnes smaller than the previous year.
U.S. wheat futures were steady to lower on the day, as projected U.S. wheat ending stocks were raised to 960 million bushels, from an earlier estimate of 935 million.
While the U.S. wheat carryout will still be down from the 1.18 billion bushel ending stocks reported the previous year, world wheat supplies are rising, The USDA pegged world wheat carryout at 268.4 million tonnes, which would be up from previous estimates and well above the 2017 carryout of 255.3 million tonnes.
