By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, November 1 (CNS Canada) – ICE Futures Canada canola ended weaker on Tuesday, pressured by a gaining domestic currency and spillover losses from other oilseed markets.
By close on Tuesday, the Canadian dollar had gained about 0.25 per cent against its US counterpart, which was bearish for canola.
Weakness in the Chicago Board of Trade soy markets added to the downside in canola, as did overnight losses in Malaysian palm oil.
Profit-taking and ideas that canola may have reached its short-term highs added to the bearish tone.
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About 30,333 canola contracts traded on Tuesday, which compares with Monday when 18,429 contracts changed hands. Spreading accounted for about 16,368 of the contracts traded.
Milling wheat, durum and barley futures were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were down by 10 to 18 cents per bushel on Tuesday, as the large US crop prospects spurred a round of speculative selling.
The US soybean harvest was 87 per cent complete as of this past Sunday, which was above the 5-year average of 85 per cent.
Yield reports continue to beat official estimates, and traders are generally bracing for upward revisions to the production number when the USDA releases its next supply/demand report on November 9.
Solid export demand on the other side did provide some support, helping limit the losses.
SOYOIL and SOYMEAL futures were down on Tuesday.
CORN futures in Chicago were down by three to six cents per bushel, as the good US harvest weather weighed on prices.
The US corn crop was 75 per cent harvested as of this past Sunday, according to the USDA, which was right in line with the average for this time of year. Weather conditions look reasonably favourable, but some farmers may be considering keeping some corn in the field for the time being due to a lack of available storage, according to reports.
News of a 212,000 tonne sale of US corn to Mexico provided some underlying support.
WHEAT futures in Chicago were down by one to two cents per bushel on Tuesday, as the losses in corn and wheat spilled over to weigh on prices.
The US winter wheat crop was 86 per cent seeded as of this past Sunday, with 58 per cent in the good-to-excellent category.
Speculative short-covering at the lows provided underlying support for wheat, while reports of possible frost damage to Australia’s crop also underpinned the futures.
