By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Nov. 18 – The ICE Futures Canada canola market ended slightly firmer on Tuesday – following a volatile session of trading where values tested both sides of unchanged before rising in sympathy with soyoil.
Commercials were on both sides of the lightly-traded market while farmers and speculators stayed largely on the sidelines, according to an analyst. He also noted producers wouldn’t likely enter the market until prices were much stronger.
European rapeseed futures were higher which helped to underpin the market.
Read Also
North American grain/oilseed review: Canola corrects higher
Glacier FarmMedia — The ICE Futures canola market settled higher for the first time in over a week, with chart-based…
However, soybeans and soymeal were both weaker which limited the gains.
The prospects for soybean production in South America continue to stay favorable, which was also bearish.
Around 16,035 canola contracts were traded on Tuesday, which compares with Monday when around 14,578 contracts changed hands. Spreading was a feature, accounting for 8,180 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade were down 8 to 15 cents per bushel per bushel on Tuesday, with speculative profit-taking a feature.
The record large US soybean harvest is nearing completion, which added to the softer tone, according to participants. The USDA reported that the soybean harvest was 94% complete as of this past Sunday, which was in line with the average for this time of year.
Relatively favourable conditions for soybeans in South America were also bearish for prices.
However, strong end user demand did provide underlying support, with the market still seeing some reaction from recent export data that beat expectations.
SOYOIL futures finished higher on Tuesday, despite the losses in soybeans. Advances in the outside vegetable oil markets and positioning against soymeal provided some underlying support.
SOYMEAL futures were down on Tuesday.
CORN futures in Chicago were down four to six cents per bushel on Tuesday, as the market continued to back away from the nearby highs hit last week.
The US corn harvest was 89% complete as of this past Sunday, according to the USDA.
However, snowfall in some parts of the Midwest is expected to delay the final stages of the harvest and the resulting concerns were somewhat supportive.
Continued demand from the ethanol sector also helped temper the declines.
WHEAT futures in Chicago were down two to three cents per bushel on Tuesday, taking some direction from the losses in corn as wheat traders continued to book profits on the three month highs hit last week.
Soft export demand contributed to the declines, according to participants.
However, colder-than-normal temperatures for this time of year across much of the US Plains did provide some support as the freezing weather may damage the US winter wheat crop.
– The cold and snowy weather has also slowed rail transportation, according to a report from BNSF. Movement to the Pacific Northwest was reported to be down 10% from the previous week.
– Russia has exported over 16 million tonnes of grain during the 2014/15 crop year to date, according to a report from the country. Wheat accounted for just over 13 million of the total.
Settlement prices are in Canadian dollars per metric ton: