WINNIPEG, Oct. 11 (MarketsFarm) – The ICE Futures canola market was weaker on Wednesday but managed to uncover some support to end off its lows for the session.
Tuesday’s close below C$710 per tonne in the nearby November contract was bearish from a technical standpoint, although the next psychological support held at C$700 per tonne.
Chicago soybeans and soyoil futures were both weaker, accounting for some spillover selling pressure in canola. European rapeseed and Malaysian palm oil futures were also lower on the day, as world vegetable oils reacted to declines in crude oil.
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A slowdown in seasonal harvest pressure, as operations near their final stages across the Prairies, helped temper the declines. Domestic crush margins also remain relatively wide.
There were an estimated 43,338 contracts traded on Wednesday, which compares with Tuesday when 72,534 contracts traded. Spreading accounted for 35,516 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade hit fresh four-month lows on Wednesday, with seasonal harvest pressure behind some of the weakness.
The United States soybean harvest was 43 per cent complete as of this past Sunday, slightly ahead of expectations. Condition ratings for what was still in the field dipped slightly, losing one point in the good-to-excellent category now at 51 per cent.
Opinions on U.S. soybean yields are divided ahead of Thursday’s monthly supply/demand report from the U.S. Department of Agriculture, with some traders expecting an increase from the 50.1 bushels per acre forecast in September and others banking on a small cut to yields.
The USDA announced private export sales of 121,000 tonnes of soybeans to China and an additional 213,000 tonnes to other unknown destinations this morning.
CORN futures saw a correction after recent declines, with dryness concerns in Argentina behind some of the buying interest.
U.S. corn condition ratings were left unchanged at 53 per cent good to excellent, with the harvest at 34 per cent complete.
Expectations for US corn yields ahead of Thursday’s report are mixed, with average guesses calling for a small reduction from the 173.8 bushels per acre currently projected by the USDA.
WHEAT was weaker, seeing a continuation of Tuesday’s declines.
U.S. winter wheat planting was 57 per cent complete in the latest weekly report, which was in line with the average for this time of year. Emergence came in at 29 per cent.
Average trade guesses ahead of Thursday’s report are for a small increase in U.S. wheat stocks from the 615 million bushels forecast in September.
