By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, March 1 – THE ICE Futures Canada canola market chalked up more losses Tuesday, as some early speculative selling took values below major chart support and into new territory.
The May contract hit its lowest point in 10 months as sell stops were hit on the way down.
“C$440 is the support for nearby canola prices,” said a trader, adding that would only hold if nearby markets allowed it to.
Losses in CBOT soybeans and the vegetable oil market were also bearish for canola.
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The Canadian dollar was also sharply higher relative to its US counterpart, which traditionally makes it more difficult for
Canadian exporters to find customers.
The South American harvest is slightly ahead of schedule, which was bearish for canola.
On the other side, strength in global financial markets provided some support to values.
Slow farmer selling and steady commercial activity helped to prop up the market.
Ideas that the market was oversold prompted some traders to buy back their positions which took the market off its lows.
Around 17,260 canola contracts were traded on Tuesday, which compares with Monday when around 12,839 contracts changed hands. Spreading accounted for about 6,422 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed two to four cents per bushel lower on Tuesday, pressured by South America’s ongoing harvest.
Reports of heavy yields from Brazil and Argentina had a bearish effect on prices.
However, strong demand for the commodity limited losses on Tuesday.
Private exporters sold 140,000 metric tonnes of soybeans for delivery in the 2015-16 crop year, the United States Department of Agriculture (USDA) said in a report on Tuesday.
SOYOIL prices settled weaker on Tuesday.
SOYMEAL closed weaker on Tuesday, tracking nearby grain and oilseed markets.
CORN futures closed one to two cents per bushel lower on Tuesday, pressured by heavy US supplies and weak demand.
The ongoing South American harvest added to the declines on Tuesday.
WHEAT closed six to seven cents per bushel lower on Tuesday, pressured by heavy stockpiles in the US.
US winter wheat conditions are variable, according to data from the USDA on Tuesday, but overall better than last year which is bearish.
– Weekly wheat export inspections were at 371.9 thousand metric tonnes, from last week’s 269.7 thousand metric tonnes, according to USDA data.
– Stripe rust is reportedly affecting some US wheat crops.
