By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Oct. 1 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, seeing some follow-through speculative buying after Monday’s rally.
Harvest delays and quality concerns following recent snow, rain, and cold temperatures across parts of the Prairies remained supportive, according to traders.
Continued strength in Chicago Board of Trade soybeans also helped underpin canola, according to participants.
However, forecasts calling for warmer and drier weather later in the week tempered the upside. Large old crop supplies, a softer tone in CBOT soyoil, and firmness in the Canadian dollar also weighed on values.
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About 28,504 canola contracts traded on Tuesday, which compares with Monday when 37,686 contracts changed hands. Spreading accounted for 19,160 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, as Monday’s move to fresh two month highs was bullish from a chart standpoint and encouraged more speculative short-covering.
The United States soybean crop was seven per cent harvested in the latest weekly U.S. Department of Agriculture crop report, which compares with the average for this time of year of 20 per cent done.
Development was also delayed with 55 per cent of the crop dropping leaves as of this past Sunday. That compares with the average of 70 per cent. Condition ratings did improve slightly though, with 55 per cent rated good to excellent.
Talk that China was looking to buy more U.S. beans was supportive. However, Chinese markets were closed today for a national holiday.
CORN futures were also underpinned by yesterday’s bullish stocks report, as the market worked to fill a gap set in early August on the charts.
Development of the U.S. corn crop was running behind average in most areas except Tennessee, according to the weekly USDA report. Only 43 per cent of the crop was said to be mature, vs. the 73 per cent average.
Corn was 11 per cent harvested, about 8 points off the average for this time of year. Condition ratings were left unchanged at 57 per cent good to excellent.
WHEAT futures were mixed on Tuesday, with small gains in Chicago soft wheat but losses in the Minneapolis and Kansas City contracts.
Profit-taking on recent gains accounted for some of the selling pressure in the hard wheats.
The U.S. spring wheat crop was 90 per cent harvested as of this past Sunday, which was off the average of 99 per cent done. The 10 per cent remaining was dealing with snow, rain, and cold temperatures, with quality downgrades expected.
