By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 10 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, falling below nearby chart support as losses in outside markets weighed on values.
Chicago soyoil futures fell sharply lower on Monday when Canadian markets were closed for Thanksgiving and remained pointed lower on Tuesday. European rapeseed and Malaysian palm oil futures were also weaker.
A move below C$710 per tonne in the November contract was bearish from a technical standpoint, with values nearing the next psychological support at C$700.
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Seasonal harvest pressure should be subsiding for canola, with most of the crop off the fields across Western Canada.
There were an estimated 72,354 contracts traded on Tuesday, which compares with Friday when 32,839 contracts traded. Spreading accounted for 57,612 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade managed to hold onto small gains on Tuesday after initially moving lower in overnight trade. The gains came despite losses in soyoil, with positioning ahead of Thursday’s monthly supply/demand report from the United States Department of Agriculture behind some of the activity.
Opinions on U.S. soybean yields ahead of the report are divided, with some traders expecting an increase from the 50.1 bushels per acre forecast in September and others calling for a small cut to yields.
Usage and ending stocks estimates will also be followed closely.
Brazilian farmers have reportedly seeded about 10 per cent of their next soybean crop, which is line with last year’s pace.
CORN futures saw some follow-through selling after Monday’s losses, with a move below some key moving averages and seasonal harvest pressure behind the weakness.
Expectations for U.S. corn yields ahead of Thursday’s report are also mixed, with average guesses calling for a small reduction from the 173.8 bushels per acre currently projected by the USDA.
Safras and Mercado estimated corn seeding in Brazil at 51 per cent complete, about seven points ahead of last year’s pace and well above the five-year average of 40 per cent.
WHEAT was weaker across the board, taking back yesterday’s gains.
Weekly U.S. wheat export inspections of 395,000 tonnes were down slightly from the previous week.
Average trade guesses ahead of Thursday’s report are for a small increase in U.S. wheat stocks from the 615 million bushels forecast in September.
Egypt reportedly purchased nearly half a million tonnes of Russian wheat at prices slightly below Russia’s stated floor price.
