By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 9 (CNS Canada) – ICE Futures canola contracts were weaker on Tuesday, as a downturn in the Chicago Board of Trade soy complex spilled over to weigh on prices.
Chart-based selling contributed to the declines in canola, with the November contract moving back below the psychological C$500 per tonne mark.
However, cool and wet harvest-delaying weather across the Prairies remained supportive. Yield and quality losses are expected, which should lead to adjustments in the supply/demand balance sheets for canola going forward.
Read Also
ICE canola softer in choppy pre-weekend trade
Glacier FarmMedia — ICE canola futures were weaker Friday morning, although activity was choppy as prices consolidated above nearby lows…
About 17,680 canola contracts traded, which compares with Friday when 16,489 contracts changed hands. The canola market was closed Monday for Canadian Thanksgiving. Spreading accounted for 12,308 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, with disappointing export demand behind some of the selling pressure.
Weekly U.S. soybean export inspections of about 570,000 tonnes were down from both the previous week and the year-ago level, accounting for some of the weakness in soybeans as the ongoing trade dispute with China continued to cut into some demand.
Seasonal harvest pressure also weighed on values, although forecasts calling for heavy rains across parts of the Midwest should lead to some delays.
The United States Department of Agriculture releases updated supply/demand data on Thursday, and positioning ahead of the report was a feature.
CORN futures were weaker, as strength in the U.S. dollar index encouraged some speculative selling.
However, expectations that U.S. President Donald Trump will be making an announcement supportive to the ethanol sector in Iowa later in the day provided some support.
Solid weekly corn export inspections, of 1.3 million tonnes, were also supportive.
WHEAT futures were higher, with Minneapolis spring wheat leading to the upside on the back of solid export demand.
The USDA reported an export sale of 120,000 tonnes of U.S. hard red spring wheat to Bangladesh this morning. Weekly export inspections also showed improvement.
However, the strong U.S. dollar could cut into that demand going forward.
