By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 29 (MarketsFarm) – The ICE Futures canola market was mostly higher on Thursday, seeing a modest correction after Wednesday’s sharp declines.
Solid demand from both exporters and domestic crushers contributed to the firmer tone. Recent weakness in the Canadian dollar was also supportive.
However, losses in Chicago Board of Trade soyoil accounted for some spillover selling pressure, tempering the upside.
Ongoing uncertainty over renewed global COVID-19 lockdown measures and the looming United States election also kept some caution in all markets, including canola.
About 31,567 canola contracts traded on Thursday, which compares with Wednesday when 35,924 contracts changed hands. Spreading accounted for 22,966 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were mixed on Thursday, although the bias was to the downside in the most active front months. Chart-based positioning ahead of the month-end was a feature.
The United States Department of Agriculture reported weekly U.S. soybean export sales of 1.6 million tonnes. That was down slightly on the week, but in line with trade expectations.
Forecasts calling for rain in parts of Brazil put some pressure on values, as the moisture should boost the yield potential and aid seeding in the country.
CORN futures were mostly lower on the day, dipping below the psychological US$4.00 per bushel mark in the front-month December contract.
Weekly U.S. corn export sales of 2.2 million tonnes were solid, helping temper the declines.
The USDA also reported additional private sales this morning of a whopping 1.4 million tonnes of corn to Mexico and an additional 140,000 tonnes to other unknown destinations.
WHEAT futures were mixed, with a steady tone in Minneapolis spring wheat and losses in the winter wheats. Recent rainfall across parts of the US Plains behind some of the selling. Strength in the U.S. dollar index was also bearish.
Weekly U.S. wheat export sales of just over 740,000 tonnes came in at the high end of trade expectations, providing some support. Ideas that the rainfall missed a number of key wheat growing regions were also supportive.