By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 21 (MarketsFarm) – The ICE Futures canola market was mixed on Tuesday, with a small loss in the nearby November contract and gains in the more deferred positions.
Strength in Chicago Board of Trade soy complex provided some spillover support for canola, with European rapeseed futures hitting fresh contract highs overnight.
Ongoing uncertainty over the size of this year’s canola crop also remained supportive, with many traders of the opinion that the actual production will end up below the 12.8 million tonnes forecast by Statistics Canada last week.
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While the crop may be smaller, seasonal hedge pressure and long liquidation by smaller speculators weighed on the front month.
About 29,076 canola contracts traded on Tuesday, which compares with Monday when 17,426 contracts changed hands. Spreading was a feature, accounting for 23,376 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade benefitted from a “turnaround Tuesday” recovery on Sept. 21, taking back some of Monday’s losses.
The United States soybean crop was six per cent harvested in the latest weekly U.S. Department of Agriculture report, which was in line with the average for this time of year.
The good-to-excellent rating improved one point on the week, to 58 per cent.
Meanwhile, farmers in Brazil are reportedly just getting started seeding their next soybean crop, with early expectations pointing to increased area and record production.
In CORN, the good harvest pace kept prices under pressure for the second day in a row.
The U.S. corn harvest was 10 per cent complete as of this past Sunday, up one point from the average for this time of year.
The good-to-excellent rating improved slightly, to 59 per cent.
Eastern corn growing regions may see some harvest delays over the next few days, with a large storm in the forecast. However, the longer range outlook remains favourable heading into October.
WHEAT futures were lower, seeing an extension of Monday’s losses. Recent strength in the U.S. dollar was a bearish influence -making US wheat more expensive for international buyers.
The U.S. winter wheat crop was 21 per cent seeded in the latest USDA report. That was up nine points from the previous week and three points ahead of the average.
