By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Feb. 26 (CNS Canada) – ICE Futures canola contracts were weaker on Tuesday, continuing their downward slide to fresh lows.
Losses in the Chicago Board of Trade soy complex, large Canadian canola supplies and bearish technical signals all weighed on values, according to participants.
Speculators were noted sellers, adding to their growing net short positions as the trend lines pointed lower.
Meanwhile, end-users on the other side were content to watch the prices slide and were only buying on a scale-down basis.
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About 27,138 canola contracts traded on Tuesday, which compares with Monday when 30,567 contracts changed hands. Spreading accounted for 17,036 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, as trade uncertainty weighed on values.
Optimism over trade talks between the United States and China had lent some overnight support to soybeans. However, with still no confirmation on any actual increase in Chinese soybean purchases the market turned lower.
Losses in Malaysian palm oil futures, the advancing Brazilian soybean harvest, and bearish technical signals added to the weaker tone.
The U.S. Department of Agriculture announced flash sales of 120,000 tonnes of soybeans to Mexico this morning.
CORN futures were weaker, taking some direction from soybeans and wheat.
Corn traders were also still looking for signs of increased purchases from China.
WHEAT ended mixed, with small gains in Minneapolis spring wheat and losses in the winter wheat contracts.
Crop ratings out of a number of key winter wheat growing states were showing the overwintered fields in much better condition than they were at this time a year ago. The Kansas winter wheat crop was rated 51 per cent good to excellent, which compares with only 12 per cent at this time in 2018.
While the U.S. does continue to miss out on some export opportunities, Taiwan did purchase 110,000 tonnes of U.S. wheat in its latest tender.
