By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sep. 7 (MarketsFarm) – The ICE Futures canola market was lower on Wednesday, as bearish technical signals weighed on values and the market was unable to hold onto earlier gains.
The November contract moved above the psychological C$800 per tonne level to start the session hitting a high of C$809.50 per tonne but failed to hold above that key chart point which encouraged additional speculative selling.
Losses in Chicago soyoil and soybeans weighed on the canola market as well. Seasonal harvest pressure and relatively favourable Prairie weather added to the softer tone, according to participants.
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Tight old crop canola supplies were confirmed by Statistics Canada in a report out Wednesday morning, with 875,000 tonnes of carryout as of July 31, 2022, roughly half of what was on hand at the end of the previous crop year.
About 39,133 canola contracts traded on Wednesday, which compares with Tuesday when 31,021 contracts changed hands. Spreading accounted for 19,416 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade had started the day higher but were weaker by Wednesday’s close as losses in crude oil weighed on world vegetable oil markets.
United States soybean condition ratings held steady over the past week at 57 per cent good-to-excellent, according to a report from the U.S. Department of Agriculture.
The recent move by Argentina to fix exchange rates for soybean exports through September remained a bearish influence on soybeans, with farmers in the country reportedly delivering just over a million tonnes into the system yesterday alone.
Customs data out of China showed soybean imports were down by 24.5 per cent in August compared to the same month last year.
CORN was also pressured by the declines in crude oil, although a rally in wheat provided some support.
The U.S. corn crop held steady at 54 per cent good-to-excellent, beating expectations for a slight decline in the rating.
WHEAT posted solid gains, reacting to comments by Russian president Vladimir Putin.
Putin criticized the agreement currently allowing Ukrainian grain exports through the Black Sea, raising concerns over renewed supply disruptions out of the region.
The U.S. spring wheat crop was 71 per cent harvested as of this past Sunday, which was above trade estimates, but still behind the 83 per cent average for this time of year.
Canadian wheat ending stocks of 3.67 million tonnes were well below last years 5.95 million tonne carryout, but in line with expectations.
