By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 11 (MarketsFarm) – The ICE Futures canola market posted losses for the fifth-straight session on Monday as bearish technical signals and seasonal harvest pressure weighed on values.
The most-active November contract neared chart support around C$760 per tonne, after losing roughly C$40 over the past week.
Farmers were reportedly making good harvest progress across Western Canada, with relatively favourable weather conditions in the forecast for most of the Prairies.
Losses in European rapeseed and Malaysian palm oil futures were also bearish for the Canadian oilseed, although the Chicago soy complex was mostly higher on the day.
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Positioning ahead of a pair of reports out later in the week kept some caution in the market, with the United States Department of Agriculture set to release their monthly supply/demand estimates on Tuesday followed by Statistics Canada’s updated production numbers on Thursday.
About 42,898 canola contracts traded on Monday, which compares with Friday when 32,215 contracts changed hands. Spreading accounted for 29,014 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, as traders adjusted positions ahead of Tuesday’s monthly supply/demand estimates from the United States Department of Agriculture.
Average trade estimates place U.S. soybean yields at around 50.2 bushels per acre, which would be down slightly from the August estimate, but still up from the 49.5 bushels per acre seen last year.
However, given hot and dry weather over the past few weeks actual yields may end up lower still, according to some analysts.
The USDA announced private export sales of 185,000 tonnes of soymeal to the Philippines this morning.
The U.S. soybean harvest is in its early stages, putting some pressure on values.
CORN was higher, with chart-based positioning ahead of Tuesday’s report a feature.
Average trade guesses place U.S. corn yields at around 173.5 bushels per acre, with total production of just over 15 billion bushels. That would be down slightly from the previous estimate, but still up on the year.
Weekly U.S. corn export inspections came in at just over 600,000 tonnes, with China and Mexico the top destinations.
The US corn harvest is just getting started, while activity is nearing completion for Brazil’s latest corn crop.
WHEAT futures in U.S. were lower across the board, with Chicago soft wheat hitting fresh contract lows.
Trade opinions are divided ahead of Tuesday’s report, with some expecting tighter carryout numbers and others looking for an increase in both U.S. and world wheat stocks.
