Glacier FarmMedia — ICE canola futures were weaker on Tuesday, taking back most of Monday’s gains as chart-based selling weighed on values.
Losses in the Chicago soy complex accounted for some spillover weakness, although Malaysian palm oil and European rapeseed held closer to unchanged.
A lack of any significant movement on trade talks with China pressured values despite recent indications that relations could be thawing.
While the canola market was due for a correction from a chart standpoint, nearby support held to the downside and values were well off their session lows at the close. The January contract briefly traded below its 50-day moving average and touched its 20-day average but settled above both chart points.
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There were 35,351 contracts traded on Tuesday, down from Monday when 49,875 contracts changed hands. Spreading accounted for 19,650 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, with profit-taking after Monday’s rally behind some of the activity.
A lack of confirmation of any fresh Chinese business after last week’s meeting between U.S. President Donald Trump and Chinese President Xi Jinping contributed to the declines, with China also reportedly buying more Brazilian soybeans.
Analysts StoneX lowered their estimate on U.S. soybean yields to 53.6 bushels per acre, which compares with the September estimate from the U.S. Department of Agriculture of 53.5 bu./ac. The October data was postponed due to the ongoing government shutdown, but the USDA has announced that November estimates will be released on Nov. 14.
Adverse weather conditions in Brazilian soybean growing regions may cut into the yield potential for the crop currently being seeded, said analyst Michael Cordonnier in a note to clients pointing to excess moisture in some areas and dryness in others.
CORN was pressured by rising production estimates and positioning after Monday’s gains.
StoneX placed U.S. corn yields at 186.0 bu./ac. which was up from an earlier estimate, but still short of the USDA’s September projection of 186.9 bu./ac.
WHEAT futures were mixed, with speculative short-covering providing some support amid recent talk that China was looking to purchase more U.S. wheat.
However, ample global supplies continued to overhang the wheat market, and Minneapolis spring wheat futures were down on the day.
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