By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 3 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, recovering off nearby lows as activity resumed after Monday’s closure for the National Day for Truth and Reconciliation.
While the Chicago soy complex posted small losses on Tuesday, soyoil futures were up sharply yesterday when the canola market was closed. European rapeseed futures were also stronger on Monday before retreating on Tuesday.
France’s Strategie Grains pegged the European rapeseed crop at 19.5 million tonnes, up by 600,000 from an earlier estimate.
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Chart-based positioning contributed to the gains in the canola market, with the November contract back above the psychological C$710 per tonne level.
Recent weakness in the Canadian dollar, which has lost more than a full cent relative to its U.S. counterpart over the past few days, was another supportive influence.
Seasonal harvest pressure remained a bearish influence in the background, although operations should be nearing their final stages across most of the Prairies.
There were an estimated 70,171 contracts traded on Tuesday. Spreading accounted for 54,414 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, seeing a correction after Monday’s gains.
The United States soybean harvest was 23 per cent complete as of this past Sunday, according to the latest weekly crop report. That was one point ahead of average but slightly behind pre-report expectations.
The U.S. Department of Agriculture announced private export sales of 265,000 tonnes of soybeans to China this morning.
The U.S. soybean crush came in at 169 million bushels in August, which was slightly below average trade expectations topping 171 million bushels and well off the 184.8 million bushels crushed the previous month. Soyoil stocks of 1.772 billion pounds were about 70 million pounds below average trade guesses.
CORN futures also retreated from yesterday’s gains as seasonal harvest pressure picks up.
The U.S. corn harvest was 23 per cent complete, which was slightly behind expectations but ahead of the 21 per cent average for this time of year.
Meanwhile, about a third of Brazil’s next corn crop is thought to be in the ground.
An estimated 442.6 million bushels of U.S. corn was used for ethanol production in August, taking the total 2022/23 marketing year usage to 5.177 billion bushels.
WHEAT saw follow through buying interest after Monday’s gains, as the futures continued to correct off multi-year lows.
The USDA announced flash sales of 220,000 tonnes of soft red winter wheat to China this morning.
The US winter wheat crop was 40 per cent planted as of this past Sunday, about three points off the average for this time of year.
