By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 18 (MarketsFarm) – The ICE Futures canola market was stronger at Tuesday’s close, recovering from earlier losses as supportive chart signals and gains in Chicago soyoil provided support.
Both the nearby November contract and the more-active January futures tested their 20-day moving averages to the downside in early activity but uncovered some support and turned higher.
Gains in soyoil and a weaker tone in the Canadian dollar were also supportive, as the resulting strength in crush margins should be keeping end users on the buy side.
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However, seasonal harvest pressure kept a lid on the upside, with steady deliveries into the commercial pipeline. Losses in Chicago soybeans also weighed on values.
About 34,195 canola contracts traded on Tuesday, which compares with Monday when 33,770 contracts changed hands. Spreading was a feature, accounting for 32,136 of the contracts traded as participants continued to roll their positions out of the front month.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, as seasonal harvest pressure weighed on values.
The United States soybean harvest was 63 per cent complete in the latest weekly U.S. Department of Agriculture report. That was up 19 points from the previous week and well ahead of the five-year average of 52 per cent. Condition ratings for what was still left in the field were left unchanged at 57 per cent good-to-excellent.
Meanwhile, about a fifth of Brazil’s next soybean crop was seeded, according to reports out of the country.
Tighter than expected U.S. soyoil stocks in a report out yesterday remained supportive for that market.
CORN was weaker on Tuesday, also pressured by the advancing harvest.
The U.S. corn harvest was 45 per cent complete as of this past Sunday, which was up six points on the week and ahead of the five-year average of 40 per cent done.
Condition ratings dipped one point in the good-to-excellent category, now at 53 per cent.
Planting of Brazil’s next corn crop was nearing the half-way mark, which was in line with the average.
WHEAT was mixed, with small gains in Minneapolis spring wheat and losses in the winter wheats.
The ongoing conflict in Ukraine remained at the forefront of the wheat trade, with the latest talks on keeping the Black Sea grain corridor open said to be positive and constructive according.
The U.S. winter wheat crop was 69 per cent seeded and 38 per cent emerged in the latest USDA report. While the planting was only a point behind the average, emergence was off by six points as dry conditions in the Southern Plains hurt germination.
