By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 26 (MarketsFarm) – The ICE Futures canola market was weaker on Monday, as overbought price sentiment had investors covering long positions and booking profits.
Chart-based selling was a feature, with ample supplies in the commercial pipeline added to the softer tone.
However, gains in Chicgo Board of Trade soyoil and weakness in the Canadian dollar provided underlying support.
A lack of significant farmer selling pressure, as harvest operations have wrapped up across the Prairies, also helped temper the declines.
About 25,103 canola contracts traded on Monday, which compares with Friday when 28,463 contracts changed hands. Spreading accounted for 16,216 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were mixed on Monday, with gains in the front months and losses in the more deferred positions.
Soybeans hit fresh four year highs in overnight activity, but ran into chart resistance as the day progressed.
Solid export demand and persistent dryness concerns in South America provided support.
The United States Department of Agriculture announced private export sales of 120,700 tonnes of soybeans to unknown destinations this morning and 135,000 tonnes of soymeal to the Philippines.
CORN futures were lower on the day, as spillover from the gains in soybeans was countered by pressure from the larger declines in wheat.
The U.S. corn harvest is estimated to be about three quarters complete, but recent precipitation could cause delays for the final quarter of the crop.
WHEAT futures posted large losses on Monday. Weekend snows and rain across the dry U.S. Plains, with calls for more precipitation, sparked the selloff, as winter wheat crops were in need of moisture.
However, solid export demand on the other side provided support, with the 11 million tonnes exported during the marketing year to date running four per cent ahead of the year ago pace.
A declining production estimate out of Argentina was also supportive.