By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 3 (MarketsFarm) – The ICE Futures canola market was stronger the first trading day of 2023, although settled off its session highs. Chart-based buying was a feature, according to participants.
Gains in Malaysian palm oil and European rapeseed futures provided some spillover support for the canola market, with a softer tone in the Canadian dollar also underpinning the market.
However, losses in Chicago soybeans and soyoil did put some pressure on values. Volumes were on the light side as participants slowly return to the market after the holidays.
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About 18,931 canola contracts traded on Tuesday, which compares with Friday when 14,017 contracts changed hands. Spreading accounted for 9,636 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, with a ‘risk off’ sentiment in global financial markets and resulting strength in the United States dollar behind some of the selling pressure in the grains and oilseeds.
Argentina received some much-needed rain over the weekend, taking some of the weather premium out of the bean market as the moisture should help the crop there. However, the longer-range forecasts remain hot and dry for the South American country.
Expectations for a possibly record-large soybean crop out of Brazil were also bearish, with chart-based selling pressure adding to the declines as some stops were likely hit on the way down.
CORN was also pressured by the strong U.S. dollar and general selling pressure.
Weekly U.S. corn export shipments of 667,000 tonnes were down from the previous week, with year-to-date shipments running well off the year-ago pace.
Meanwhile, Ukrainian corn exports were reportedly running ahead of the year ago pace, despite the ongoing conflict.
WHEAT was lower across the board. Dry areas of the southern U.S. Plains saw some good precipitation over the weekend, which should bode well for the winter wheat crops there.
Ukrainian wheat exports so far this marketing year of about 8.4 million tonnes were running about 47 per cent behind last year’s pace.
