By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 21 (MarketsFarm) – The ICE Futures canola market settled at its strongest levels of the past month on Tuesday, seeing a continuation of Monday’s rally.
Gains in outside markets provided spillover support, with Chicago soyoil, European rapeseed and Malaysian palm oil futures all higher.
Bullish chart signals contributed to the gains, as Monday’s close above the 50-day moving average in the January contract encouraged more fund short-covering.
However, a firmer tone in the Canadian dollar and a lack of significant export demand tempered the advances.
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There were an estimated 43,397 contracts traded on Tuesday, which compares with Monday when 45,076 contracts traded. Spreading accounted for 30,954 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade held onto small gains on Tuesday, as traders squared positions ahead of the Thanksgiving holiday. Markets in the United States will be closed Thursday and only open for reduced hours on Friday, with many participants already starting to move to the sidelines.
Gains in soyoil provided spillover support for soybeans on Tuesday, although that strength was countered by declines in soymeal as the product spreads saw some adjustment.
Forecasts calling for much-needed moisture in dry northern growing regions of Brazil weighed on values. Meanwhile, southern parts of the country remained excessively wet.
Soybean planting in Brazil continued to run well behind normal, at 68 per cent complete, according to reports.
CORN futures held near unchanged on Tuesday, lacking any clear direction.
The U.S. corn harvest was 93 per cent complete as of this past Sunday, two points ahead of average for this time of year. However, some farmers in the Eastern Corn Belt were still dealing with excess moisture, waiting for their fields to dry down.
WHEAT was thought to be due for a correction after yesterday’s losses, with positioning ahead of the Thanksgiving holiday a feature.
The U.S. winter wheat crop was 95 per cent seeded in the latest weekly report, only one point off the average. Emergence, at 87 per cent, was two points ahead of the average.
Quality ratings improved slightly on the week, moving up one point in the good-to-excellent category at 48 per cent.
