By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
ICE Futures Canada canola ended weaker on Tuesday, pressured by increased farmer-selling and weakness in other vegetable oil markets.
Producers have been waiting for rallies in canola, market watchers say, and Monday’s advances caused increased selling.
Losses in the Chicago Board of Trade soy oil market also had a bearish effect on canola prices.
About 21,784 canola contracts traded on Tuesday, which compares with Monday when 22,435 contracts changed hands. Spreading accounted for about 11,464 of the contracts traded.
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Barley futures were untraded and unchanged, while milling wheat and durum were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were up by 6 to 10 cents per pound on Tuesday, seeing a continuation of Monday’s rally as a move above nearby resistance triggered additional buy stops.
Solid export demand accounted for much of the strength, as the market continued to react to Monday’s better-than-expected export inspections data, according to market participants.
However, the large US crop and good South American seeding conditions tempered the advances.
SOYOIL futures were down on Tuesday, with adjustments to the soyoil/soymeal spread behind some of the selling pressure.
News of a 30,000 tonne sale of US soyoil to China did provide some underlying support.
SOYMEAL futures were stronger on Tuesday.
CORN futures in Chicago were up by one to two cents per bushel on Tuesday, with the continued strength in soybeans providing some spillover support.
Nearby technical signals contributed to the firmer tone, as values edged above some key moving averages.
However, the burdensome US supply situation kept the advances in check.
WHEAT futures in Chicago were narrowly mixed on Tuesday, with losses in the nearby December contract and a steady to firmer tone in the more deferred positions.
The US winter wheat crop was rated at 58 per cent good-to-excellent in the latest weekly report, which was down one percentage point from the previous week. The crop is 97 per cent seeded, which compares with the 99 per cent average for this time of year.
