WINNIPEG, Oct. 31 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, as an attempt at correcting higher ran into resistance and prices dropped to fresh four-and-a-half month lows.
Support at C$680 per tonne had held in the January contract for most of the session before heavy selling in the final minutes of trade took values below that psychological chart-point.
In addition to the bearish chart signals, losses in Chicago soyoil and a lack of significant export demand also weighed on values.
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However, crush margins remain historically wide which likely kept domestic processors in the market – at least on a scale-down basis. Gains in Chicago soybeans and soymeal, along with a weaker tone in the Canadian dollar, also provided some support.
There were an estimated 34,371 contracts traded on Tuesday, which compares with Monday when 38,864 contracts traded. Spreading accounted for 21,080 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade held onto small gains on Tuesday, finding support from advances in soymeal as that market recovered after Monday’s heavy losses. However, declines in soyoil tempered the upside in beans.
Dryness concerns in Brazil, where farmers are still seeding their next soybean crop, provided some support as production may not live up to earlier expectations.
The United States soybean harvest was 85 per cent complete as of this past Sunday, seven points ahead of average for this time of year.
The U.S. Department of Agriculture announced private export sales of about 240,000 tonnes of soybeans to Mexico this morning.
CORN futures held onto small gains, as the dryness hampering soybean seeding in Brazil could also cut into the country’s next corn crop if the planting window is pushed back too far.
The U.S. corn harvest was 71 per cent complete in the weekly USDA report, up from the 66 per cent average. However, recent snowfall in some regions may cause delays for the final stages of harvest.
WHEAT was lower across the board, with the largest losses in Kansas City hard red winter wheat.
The U.S. winter wheat crop was pegged at 47 per cent good to excellent in the first quality rating for the year. That marked the best initial reading since 2019.
Planting progress came in at 84 per cent complete, only one point off the seasonal average.
