By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 6 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, hitting its highest levels in two weeks as gains in outside vegetable oil markets provided support.
Malaysian palm oil and Chicago Board of Trade soyoil futures both posted solid advances. CBOT soybeans hit fresh contract highs on the back of good export demand and dryness concerns in Brazil.
A slowdown in farmer selling, as producers appeared content to only sell on a scale-up basis, was also supportive. Farmers have made good deliveries into the commercial pipeline over the past few weeks, but harvest operations are nearing completion.
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About 43,543 canola contracts traded on Tuesday, which compares with Monday when 18,425 contracts changed hands. Spreading accounted for 15,560 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were up sharply on Tuesday, hitting fresh contract highs as good export demand triggered some speculative buying interest.
The United States Department of Agriculture announced private export sales of 154,000 tonnes to unknown destinations this morning, with China thought to be the likely buyer.
Dryness concerns in Brazil and the resulting slow pace of seeding their next crop contributed to the rally in Chicago, as any production issues there would shift more Chinese demand back to the U.S.
The U.S. soybean harvest was 38 per cent complete as of this past Sunday. That was up 18 points from the previous week, and 10 points ahead of the average for this time of year.
Hurricane Delta is bearing down on the U.S. Gulf Coast, which may hamper harvest operations next week, and also slow export movement out of the region.
CORN futures were also up with the broad-based buying interest underpinning most commodities.
The U.S. corn harvest was 25 per cent complete in the weekly USDA report, which was in line with the five-year average.
The USDA releases updated supply/demand data on Friday, including updated yield estimates. Pre-report positioning was a feature.
WHEAT futures were stronger across the board, with the largest advances in Kansas City hard red winter wheat.
The U.S. winter wheat crop was 52 per cent seeded as of this past Sunday, coming in at the higher end of trade estimates. Emergence, at 24 per cent, was slightly ahead of average.
World and U.S. wheat ending stocks estimates will be followed closely in Friday’s report, with expectations for tightening world supplies.
