By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 13 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, seeing some adjustment relative to the Chicago Board of Trade soy complex.
Soybeans and soyoil both posted sharp losses on Monday, when Canadian markets were closed for Thanksgiving. While soybeans corrected higher on Tuesday, the soy market failed to reclaim all of its losses.
Chart-based profit-taking contributed to the losses in canola.
However, a slowdown in farmer selling as harvest operations wrap up across the Prairies provided some underlying support.
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Solid end-user demand on a scale-down basis also helped temper the declines.
About 36,168 canola contracts traded on Tuesday, which compares with Friday when 33,604 contracts changed hands. Spreading accounted for 28,460 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, in ‘turnaround Tuesday’ activity as the market corrected after Monday’s declines.
After dropping sharply lower yesterday, ideas that the losses were overdone had speculators back on the buy side on Tuesday.
Continued dryness in South America contributed to the gains.
Soybean seeding in Brazil is running well behind normal, with only three per cent of intended acres planted so far in the key growing state of Mato Grosso, according to reports. That compares with 19 per cent at this time last year, and marks the slowest start to seeding in 10 years.
The United States soybean harvest is estimated to be about half complete, with weather across the Midwest generally favourable for the time being.
CORN futures also recovered some of Monday’s losses, with good export demand behind some of the strength.
The U.S. Department of Agriculture announced private export sales of 110,000 tonnes of corn to Mexico this morning.
France’s agriculture ministry released updated production estimates, cutting their estimate on the size of the country’s 2020 corn crop to 13.5 million tonnes. That was down by 600,000 tonnes from an earlier estimate, but still slightly ahead of the year-ago crop and five-year average.
The U.S. corn harvest is estimated to be nearing 40 per cent completion.
WHEAT futures were narrowly mixed, seeing some consolidation after recent price activity.
France’s 2020 soft wheat crop was lowered to 29.2 million tonnes by the agriculture ministry, from an earlier forecast of 29.5 million. The crop would be down 26 per cent on the year and 18 per cent below the five year average.