By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 14 (MarketsFarm) – The ICE Futures canola market was mostly stronger on Thursday, seeing a continuation of Wednesday’s recovery off of nearby lows.
Gains in Chicago Board of Trade soyoil and European rapeseed futures provided spillover support for canola. However, Malaysian palm oil was down with profit-taking after setting fresh all-time highs.
Ongoing concerns over tight Canadian canola supplies remained a supportive influence, according to participants.
The Canadian dollar was stronger on Thursday, which put some pressure on the canola market as the rising currency cuts into the already soft crush margins.
About 29,915 canola contracts traded on Thursday, which compares with Wednesday when 23,623 contracts changed hands. Spreading accounted for 22,196 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, with chart-based speculative buying a feature as the market took back some of its recent losses.
Soybeans had dropped sharply earlier in the week after the United States Department of Agriculture released bearish production and stocks data.
Wet forecasts leading to possible harvest delays in parts of the Midwest over the next few days were also supportive.
The USDA announced private soybean sales of 132,000 tonnes of soybeans to unknown destinations. Weekly export data is delayed until Friday.
The USDA’s Ag Attaché in Argentina forecast that country’s soybean crop at 49.7 million tonnes, which compares with the official estimate of 52 million tonnes.
CORN was also due for a correction after its bearish reaction to the USDA’s production and yield estimates earlier in the week.
Harvest delays added to the firm tone in corn, with ideas that recent losses were overdone also supportive.
However, damage was done from a chart perspective, former support now providing resistance to the upside.
Weekly U.S. ethanol data showed production of the renewable fuel was up by 5.5 per cent on the week, coming in at just over a million barrels per day. That marked the first million barrel per day average since July. However, ethanol stocks tightened to their smallest level in five month, as demand ramps up.
WHEAT was higher, finding some support on ideas yesterday’s losses were overdone.
Tightening world supplies and solid demand contributed to the gains.
Rains delaying winter wheat seeding in the Southern Plains were also supportive, although the moisture will be beneficial for crops in the long run.