By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Sep. 25 (CNS Canada) – ICE Futures canola contracts were stronger on Tuesday, as cool and wet conditions continue to stall harvest operations across Western Canada.
With about half of the country’s canola crop still unharvested and only small windows of opportunity in the immediate forecasts, the prolonged harvest is expected to keep canola underpinned until traders get a better sense of yields and quality.
Supportive chart signals contributed to the gains in canola, with a move above the C$490 per tonne level in the November contract bringing in some additional speculative buying.
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However, canola remains expensive compared to other oilseeds, which kept a lid on the market.
About 11,392 canola contracts traded, which compares with Monday when 7,101 contracts changed hands. Spreading accounted for 5,190 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, seeing a modest correction following recent declines.
The United States soybean harvest was 14 per cent complete in the latest U.S. Department of Agriculture report, which is running ahead of average for this time of year.
However, recent rainfall across the Midwest is expected to lead to delays over the next week.
A port strike in Argentina was limiting movement out of the South American country today.
The lingering trade dispute between the U.S. and China remained a bearish influence in the background.
CORN futures were firmer on the day, also underpinned by the wet Midwestern weather.
The U.S. corn harvest was 16 per cent done as of this past Sunday, which was up by five points compared to the average for this time of year.
The USDA reported a private export sale of about 240,000 tonnes of corn to Mexico this morning.
WHEAT futures were lower, seeing a profit-taking setback after recent gains.
The U.S. winter wheat crop was 28 per cent seeded in the latest weekly report, which compares with 22 per cent last year and the five-year average of 26 per cent.
The USDA releases quarterly grain stocks data on Friday, and expectations that the report will confirm large U.S. wheat supplies put some pressure on values.
