By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Oct. 22 (MarketsFarm) – ICE Futures canola contracts were stronger on Tuesday, taking back some of their recent declines.
Gains in Chicago Board of Trade soyoil and a steady tone in the Canadian dollar helped underpin crush margins, with domestic processors behind some of the buying interest.
Ongoing weather concerns over the late harvest in many areas of the Prairies were also supportive, according to participants.
However, producers were making progress where they could and increasing supplies in the commercial pipeline tempered the upside.
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Bearish technical signals and Canada’s ongoing trade dispute with China also put some pressure on values.
About 46,609 canola contracts traded on Tuesday, which compares with Monday when 46,238 contracts changed hands. Spreading accounted for 41,236 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade held onto small gains on Tuesday, as the pendulum on Chinese trade sentiment swung back to the optimistic side on talk China had issued tariff waivers for 10 million tonnes of United States soybeans.
The U.S. soybean harvest was 46 per cent complete in the latest weekly U.S. Department of Agriculture report. That was up 20 points from the previous week, but still well off the 64 per cent average for this time of year.
Condition ratings were left unchanged at 54 per cent good to excellent.
CORN futures held near unchanged, with the bias slightly higher in the front months at the close.
The U.S. corn harvest advanced eight points in the latest weekly report, to 30 per cent complete. That was behind trade guesses of 34 per cent done, and well off the 47 per cent five-year average for this time of year. While the nearby forecasts are dry, expectations for more rain across the Midwest later in the month should keep the pace running behind normal, especially as crop development remains delayed.
WHEAT futures were mixed on Tuesday, with gains in Minneapolis spring wheat and a softer tone in the winter wheats.
The U.S. winter wheat crop was 77 per cent seeded in the latest report, with 53 per cent emerged. Spring wheat in the country was 96 per cent harvested.
Rising Russian wheat prices provided some support for the U.S. market, as the gains there make North American exports more attractive. Production uncertainty in Australia and Argentina was also supportive, with both major wheat exporters dealing with dry conditions.
