By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 14 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday after a choppy trading day that saw prices hold within a relatively narrow range.
Losses in Chicago soybeans accounted for some spillover selling pressure in the Canadian oilseed, but soyoil recovered from its own lows and was higher by the close. Overnight gains in Malaysian palm oil were also supportive, while European rapeseed was lower.
Wide crush margins remain a supportive influence, with domestic processors operating at close to full capacity. However, supplies in the commercial pipeline are thought to be comfortable for the time being, limiting end user demand.
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About 25,190 canola contracts traded on Tuesday, which compares with Monday when 31,078 contracts changed hands. Spreading accounted for 18,070 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade drifted lower on Tuesday, with chart-based speculative selling a feature amid ideas the market was due for a profit-taking correction after running into technical resistance.
Uncertain production prospects out of Argentina remained a feature in the background of the soybean market given the ongoing dryness in the country, while excessive moisture in parts of Brazil has slowed harvest operations there.
Brazil’s soybean harvest was pegged at 17 per cent complete, which compares with 24 per cent at the same time a year ago.
CORN had been higher earlier in the day but turned mixed with losses in the most active front months and gains in the deferreds at the final bell.
The slow soybean harvest pace in Brazil is also causing delays for seeding the country’s next corn crop, although moisture levels will be good for germination when farmers are able to get on their fields.
Mexico is reportedly reconsidering a looming ban on genetically modified corn. While a January 2024 deadline to stop importing GM corn for human consumption is still in place, it’s now expected that corn destined for feed channels will still be allowed.
WHEAT was mixed at the close, with Minneapolis spring wheat holding onto small gains in the front months while the winter wheats were all lower.
Data out of Texas showed only 11 per cent of the state’s wheat crop was rated good-to-excellent as of this past Sunday which was down two points on the week.
Uncertainty over Ukrainian grain exports going forward kept some caution in the wheat market, with only about a month left in the current agreement allowing Black Sea movement.
