By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 4 (MarketsFarm) – The ICE Futures canola market was stronger on Monday, but off its session highs after running into some profit-taking resistance.
Tight supplies and the need to ration demand remained supportive, as did bullish technical signals.
A rally in crude oil fueled gains in the vegetable oil markets in general, with some of that strength spilling into canola. Chicago Board of Trade soyoil futures were higher for most of the day, but eventually drifted lower to settle near unchanged.
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Strength in the Canadian dollar put some pressure on canola. Ideas that the market was overpriced also tempered the advances.
About 32,691 canola contracts traded on Monday, which compares with Friday when 18,155 contracts changed hands. Spreading accounted for 23,118 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, seeing a continuation of the previous week’s declines.
Gains in soyoil provided some spillover support for soybeans, but oil drifted off its highs as the day progressed with last week’s larger-than-expected quarterly stocks number from the United States Department of Agriculture also weighing on values.
Seasonal harvest pressure was another bearish influence, with trade estimates pegging the harvest at nearly a third complete.
CORN traded to both sides of unchanged, although the bias was lower in sympathy with soybeans.
The USDA reported private export sales of 426,800 tonnes of corn to Mexico this morning, which was supportive for prices.
Rains in parts of the Eastern Corn Belt also underpinned the futures, delaying harvest operations in the region.
However, the overall harvest progress is still thought to be running well ahead of normal
WHEAT was mixed, seeing some consolidation after last week’s rally.
Tight U.S. wheat stocks remained supportive, with reports that dryness in Russia may limit winter wheat seeding there also underpinning the futures.
Russia was also reportedly reconsidering imposing another quota on wheat exports.
