By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sep. 8 (MarketsFarm) – The ICE Futures canola market was weaker on Thursday, seeing follow-through selling after Wednesday’s drop below chart support.
Wednesday’s close below C$800 per tonne in the nearby November contract was bearish from a technical standpoint, with the resulting speculative selling building on itself on Thursday.
Losses in European rapeseed and Malaysian palm oil also weighed on canola, although a turn higher in Chicago soyoil provided some support.
Seasonal harvest pressure and relatively favourable Prairie weather were overhanging the market, with scale-down end-user demand on the other side tempered the declines.
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About 47,450 canola contracts traded on Thursday, which compares with Wednesday when 39,133 contracts changed hands. Spreading accounted for 30,978 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade traded to both sides of unchanged on Thursday, hitting their weakest levels in a month before support was uncovered to the downside and values turned higher.
Positioning ahead of next week’s monthly United States supply/demand report accounted for some of the activity, with general expectations for a slight decline in U.S. soybean yields from earlier estimates, but small upward revisions to ending stocks.
Updated acreage data will also be included in the report, with opinions divided on whether actual seeded area was above or below previous estimates.
CORN was caught up in broad recessionary fears weighing on many markets, with positioning ahead of next week’s USDA report a feature.
Average trade guesses are calling for a three bushel per acre cut to U.S. corn yields from the 175.4 bushels per acre forecast in August.
WHEAT was lower, with the largest losses in the winter wheats as the spread with Minneapolis spring wheat saw some adjustment.
While concerns that the safe-passage corridor for Ukrainian grain through the Black Sea may be in jeopardy provided some support, U.S. wheat futures were thought to be looking overpriced after hitting their highest level in two months yesterday.
Expectations ahead of the Sep. 12 supply/demand report are for an increase in U.S. wheat stocks.
