By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 27 (CNS Canada) – ICE Futures Canada canola contracts were mixed on Thursday, although the bias was higher in the most active months as ongoing harvest delays, speculative buying, and gains in Chicago Board of Trade soybeans all provided support.
A large amount of canola is still in the fields in Alberta and Saskatchewan, where farmers continue to face cool and wet harvest conditions. Saskatchewan Agriculture released its weekly report during the session, estimating that 20 per cent of the provincial canola crop was still in the field.
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Chart based buying was also supportive, as nearby technical signals remain pointed higher and fund traders added to their net long positions, said traders.
However, losses in CBOT soyoil did put some pressure on values.
Profit taking at the highs and expectations for a large US soybean crop also kept the gains in check.
About 31,889 canola contracts were traded on Thursday, which compares with Wednesday when 38,447 contracts changed hands. Spreading was a feature, accounting for 19,556 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although wheat prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were steady to up four cents per bushel on Thursday, as solid export demand remained supportive.
Weekly US soybean sales topped two million tonnes for the second straight week, which provided the catalyst for the day’s strength.
The USDA also reported additional sales of over 500,000 tonnes to China and other unknown destinations.
Fund buying was a feature in soybeans, with the technical charts pointing higher, according to participants.
However, seasonal harvest pressure in the US and relatively favourable South American planting conditions did limit the advances.
SOYOIL futures were down on Thursday.
SOYMEAL futures were up on Thursday, with spreading against soyoil a feature.
CORN futures in Chicago were up by two to three cents per bushel on Thursday.
The advances in soybeans provided some spillover support, but the underlying fundamentals were a bit more bearish as far as corn was concerned.
Weekly US corn sales of about 800,000 tonnes were at the low end of trade estimates and the smallest of the past month.
WHEAT futures in Chicago were up by one to three cents per bushel on Thursday.
Fund traders covering short positions remained a feature in wheat.
US wheat sales during the week came in at about 650,000 tonnes, which was above trade expectations, and provided further support.
However, ample world wheat supplies and an upward revision to the International Grains Council’s world grain production estimate did weigh somewhat on values.
