By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 17 (MarketsFarm) – The ICE Futures canola market was stronger on Thursday, hitting fresh contract highs as bullish technical signals and gains in Chicago Board of Trade soybeans kept fund traders on the buy side.
A lack of significant selling pressure on the other side, with farmers busy with the harvest and other participants content to keep to the sidelines as prices climb higher, added to the firm tone.
Gains in Chicago Board of Trade soybeans and Malaysian palm oil provided additional spillover support for canola, although soyoil held near unchanged.
Seasonal harvest pressure and ideas canola was looking overbought kept canola off of its highs for the session.
About 33,284 canola contracts traded on Thursday, which compares with Wednesday when 36,479 contracts changed hands. Spreading accounted for 21,874 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, as speculative money was flowing into the grains and oilseeds.
Weekly United States soybean export sales of about 2.5 million tonnes were at the higher end of trade estimates, providing some support.
The U.S. Department of Agriculture also announced additional export sales of 264,000 tonnes of soybeans to China this morning and 360,000 tonnes to other unknown destinations.
However, overbought price sentiment and the looming harvest put some pressure on values.
CORN futures were also up on the back of good export demand, with weekly U.S. corn exports of 1.6 million tonnes at the high end of trade guesses. The USDA also announced a 120,000 tonne sale to unknown destinations this morning.
Ideas that China’s corn production may be down by as much as 10 million tonnes this year added to the strength in the U.S. futures.
WHEAT futures were also boosted by speculative money, jumping to their highest levels in two weeks.
Weekly U.S. wheat export sales of about 335,000 tonnes were at the lower end of trade estimates, but total sales were still running about seven per cent ahead of the year ago pace.
Dryness in Ukraine and parts of Europe was leading to concerns about wheat crops there, adding to the general strength in the U.S. futures.