By Phil Franz-Warkentin, Commodity News Service
Winnipeg, Nov. 3 – ICE Futures Canada canola contracts were stronger on Tuesday, as commercial and speculative buying interest helped the market see a modest correction off of nearby chart support.
Gains in Chicago soyoil contributed to the firmer tone in canola, according to participants.
However, canola remained rangebound overall with strength in the Canadian dollar helping temper the upside potential. Ideas that Canada’s canola crop likely ended up larger than official estimates also limited the gains.
About 14,618 canola contracts were traded on Tuesday, which compares with Monday when 10,309 contracts changed hands. Spreading accounted for 6,804 of the contracts traded.
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Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade settled within a penny of unchanged on Tuesday, retreating from earlier gains as rising production prospects weighed on prices.
Solid export demand provided some early support for soybeans, according to participants.
However, the good US harvest pace and generally favourable yield reports were bearish overall.
Private forecasters Informa Economics released updated production estimates today, raising their projection for the US soybean crop to 3.952 billion bushels.
The US soybean harvest was 92% complete as of this past Sunday, according to the weekly USDA report, which is ahead of both the year ago level and the average for this time of year.
SOYOIL settled higher on Tuesday, as gains in crude oil provided some spillover support.
SOYMEAL futures were down on Tuesday, with spreading against soyoil behind some of the selling pressure.
CORN futures in Chicago were up by three to four cents per bushel on Tuesday.
Gains in crude oil, chart based buying, and a lack of significant farmer selling all provided some support for corn.
On the other side, Informa pegged the 2015 US corn crop at 13.718 billion bushels, which would up from their last estimate.
The US corn harvest is now 85% complete, which was well ahead of the year ago level and five year average.
WHEAT futures in Chicago were up by six to over eight cents per bushel on Tuesday, with speculative buying helping the market see a correction off of Monday’s lows.
The US winter wheat crop was rated 49% good to excellent in the latest USDA report. That was a slight improvement from last week, but still well off the 59% of the crop in that bracket at the same time a year ago.
Persistent dryness concerns in the Black Sea region also provided some underlying support.
