By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 11 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Tuesday, as bullish chart signals and weather worries provided support.
The final stages of this year’s harvest continue to be delayed by cool and wet conditions across the Canadian Prairies, which kept canola underpinned, according to traders.
The November contract briefly tested the C$475 per tonne mark, but was unable to settle above that level, which hasn’t been breached since mid July.
Losses in Chicago Board of Trade soyoil futures did weigh on values, although soyoil was up sharply on Monday when Canadian markets were closed for Thanksgiving.
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About 34,062 canola contracts were traded on Tuesday, which compares with Friday when 19,712 contracts changed hands. Spreading accounted for 13,744 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 narrowly mixed on Tuesday, as traders squared positions ahead of Wednesday’s monthly USDA supply/demand report.
Average trade guesses are predicting an increase in the US soybean production number in tomorrow’s report, especially as harvest reports continue to beat expectations across the Midwest.
Conditions look favourable for the most part into the next week, which should allow producers to keep making good progress bringing in this year’s crop.
However, export demand on the other side also remains strong and total stocks projections may still see some tightening.
SOYOIL futures were down on Tuesday, retreating from Monday’s gains.
SOYMEAL futures were up on Tuesday, with positioning against soyoil behind some of the strength.
CORN futures in Chicago were up by one to two cents per bushel on Tuesday, with positioning ahead of tomorrow’s report a feature.
Traders are still holding large net short positions in corn and were buying some of those positions back today amid expectations for a possible down-grade in the size of the US corn crop from the USDA.
However, seasonal harvest pressure did limit the advances with the corn harvest over a third complete.
WHEAT futures in Chicago were up by one to three cents per bushel on Tuesday.
The US winter wheat crop is estimated to be about half seeded, although recent rains in some wheat growing regions may cause delays getting in the rest of the acres.
Quality concerns with the North American spring wheat crop remain supportive, especially for the Minneapolis spring wheat futures, but ample world wheat supplies remained bearish on the other side.
