By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 5 (MarketsFarm) – The ICE Futures canola market was stronger on Monday, as a rally in Chicago Board of Trade soyoil and outside energy markets provided support.
Crude oil was up sharply on Monday amid news that United States President Donald Trump’s condition was improving after being hospitalized due to COVID-19 last week. A strike in Norway shutting down six offshore oil rigs added to the gains in crude oil that spilled into the vegetable oil markets, including canola.
A lack of significant farmer selling, as harvest operations near completion across Western Canada, was also supportive.
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From a chart perspective the November contract was stabilizing in a range between C$510 and C$525 per tonne, according to an analyst.
A firmer tone in the Canadian dollar put some pressure on values, tempering the upside.
About 18,425 canola contracts traded on Monday, which compares with Friday when 23,524 contracts changed hands. Spreading accounted for 11,900 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade settled narrowly mixed on Monday, after posting losses for most of the session.
Chinese markets remained closed Monday for a national holiday, limiting some export demand.
Good Midwestern harvest weather put some pressure on soybean prices, with trade estimates pegging the harvest at a third complete or more.
Meanwhile, dry weather in Brazil was reportedly hampering soybean seeding there, as the crop will need more moisture to germinate.
Crude oil was up sharply on Monday, with the strength in that market also supportive for soyoil. However, soymeal posted large losses.
CORN futures also weakened with seasonal harvest pressure and the good Midwestern weather.
However, the gains in equity and energy markets today provided some support and corn settled within half a cent of unchanged.
The United States Department of Agriculture announced a 160,000 tonne sale of corn to Mexico this morning.
WHEAT futures were stronger across the board, as harvest pressure was not a factor in the market.
Dryness in Russia and Ukraine accounted for some of the strength in the U.S. futures, as winter wheat seeding in the Black Sea region was hampered by a lack of moisture.
