By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Jan. 14 (MarketsFarm) – ICE Futures canola contracts were lower on Tuesday, backing away from chart resistance as traders were watching for some fresh market moving news.
Early losses in Chicago Board of Trade soyoil and soybeans pressured values, but soyoil recovered to end higher while soybeans settled near unchanged.
Activity was choppy throughout the session, as participants await more details on the Phase One trade deal between the United States and China set to be signed in Washington on Wednesday.
Canada’s own trade relationship with China remains in question, with no real movement on that front.
About 18,725 canola contracts traded on Tuesday, which compares with Monday when 16,290 contracts changed hands. Spreading accounted for 10,180 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade held narrowly rangebound on Tuesday, finishing unchanged in the most active months as investors await more details on the trade deal between the United States and China.
Phase One of the agreement is set to be signed in Washington on Wednesday, with confirmation of extra U.S. business to China a possibility.
The U.S. Department of Agriculture announced private export sales of 120,000 tonnes of soybeans to unknown destinations Tuesday morning.
Large South American crop projections remained a bearish influence in the background.
CORN was slightly lower in the most active months, with positioning ahead of the U.S./China trade deal a feature.
Recent rain in Brazil helped conditions for the corn crop there, although forecasts were calling for warmer and drier weather over the next week.
WHEAT futures were steady to higher, with the largest gains in the Chicago and Kansas City winter wheat contracts.
Gains in European wheat futures provided some support, while declining export competition out of Russia also underpinned the futures.
There was also some optimism that the U.S./China trade deal will lead to more U.S. wheat sales to the country.