By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 25 (CNS Canada) – ICE Futures Canada canola contracts were mixed at Tuesday’s close, although the bias was weaker in the most active months as prices ran into resistance after hitting fresh four-month highs.
Losses in Chicago Board of Trade soyoil futures contributed to the softer tone in canola, although the Canadian oilseed was showing some independent strength for most of the session.
Canola lagged soyoil to the upside on Monday, and the resulting gains in domestic crush margins likely kept the processors showing solid demand.
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Ongoing harvest delays in parts of Western Canada provided some underlying support as well, with many fields facing the prospect of being left to overwinter if conditions don’t improve.
About 42,704 canola contracts were traded on Tuesday, which compares with Monday when 53,615 contracts changed hands. Spreading accounted for 8,836 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were up two cents to down one cent per bushel on Tuesday, with a softer tone in the most active contracts.
The US soybean harvest was 76 per cent complete as of this past Sunday, according to the latest USDA report. That was slightly off last year’s pace, but still in line with the five year average.
Solid export demand accounted for some of the buying interest in soybeans today.
However, a correction lower in soyoil, after it hit two year highs yesterday, put some pressure on values.
General strength in the US dollar index also weighed on soybeans, as the rising currency should be cutting into some international buying interest.
SOYOIL futures were down on Tuesday, as profit-taking came forward to take values off of their nearby highs.
SOYMEAL futures were up slightly on Tuesday, with spreading against soyoil behind some of the strength.
CORN futures in Chicago were slightly higher on Tuesday, after bouncing around within a narrow range throughout the session.
The US corn crop was 61 per cent harvested as of Sunday, which was in line with the five year average.
While the advancing harvest and large crop prospects did weigh on prices, supportive chart signals were enough to keep corn pointed higher at the close.
WHEAT futures in Chicago were up by one to three cents per bushel on Tuesday.
Ample world wheat supplies and soft demand for US supplies accounted for some of the selling pressure, as the US continues to miss out on export opportunities.
However, quality issues with the North American spring wheat crops remained somewhat supportive
Next year’s US winter wheat crop was 79 per cent seeded as of this past Sunday, which was slightly off the 82 per cent average. Roughly 59 per cent was rated good to excellent, which compares with only 47 per cent in that category last year at this time.