By Phil Franz-Warkentin and Dave Sims, CNS Canada
Winnipeg, Nov. 17 – ICE Futures Canada canola contracts were down on Tuesday, as light speculative selling and farmer hedges weighed on prices.
The losses in canola came despite a firmer tone in CBOT soybeans and soyoil, with some of the relative weakness in the Canadian oilseed tied to the adjustments of the spreads between the two markets, according to participants.
The nearby chart signals also remain pointed lower for canola, although the market managed to hold above some key support levels.
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Solid end user demand underneath the market was one factor helping limit the losses, according to a broker. However, he added that buyers were also not very aggressive given ideas that Canada’s crop was likely larger than the current official estimates.
About 20,063 canola contracts were traded on Tuesday, which compares with Monday when 16,799 contracts changed hands. Spreading accounted for 14,272 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN prices ended 3 to 4 cents per bushel higher Tuesday on solid crusher demand.
October crush numbers in the US were recorded at 158.89 million bushels. That is slightly below traders’ estimates coming into the month, but it is still higher than last year and a record for October.
Brazil’s soybean plantings are estimated to be 87% finished, up from last week’s estimate of 80%.
SOYOIL finished 27 points higher, with spreading against soymeal a feature.
SOYMEAL futures dipped slightly, due to weakening demand from the livestock sector.
WHEAT futures on the Chicago Board of Trade fell 6 to 8 cents per bushel lower Tuesday, as the near-month December contract sunk to its lowest point since October 20.
The rising US dollar weighed on the market, said an analyst.
Recent rain in the Black Sea region has aided drought-stressed crops in parts of Ukraine and Russia.
CORN futures on the Chicago Board of Trade were 1 to 2 cents per bushel higher on chart-based trading.
Short-covering on recent lows was supportive.
The US is reporting corn sales to Mexico at 953,000 metric tonnes for 2015/16.
– The International Grains Council is predicting global cereal production in 2015/16 will reach 1.9988 billion tonnes. That is slightly higher than the previous forecast.
– Australia’s trade minister is leading a delegation of 300 business professionals to Indonesia in an effort to secure a new trade deal. The Asian country is traditionally Australia’s largest buyer of wheat.
