By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Nov. 12 (MarketsFarm) – ICE Futures canola contracts were slightly weaker at Tuesday’s close, after trading to both sides of unchanged in choppy activity.
Losses in Chicago Board of Trade soyoil and a firm tone in the Canadian dollar caused crush margins to fall, which kept domestic processors on the sidelines, according to a trader.
A lack of significant fund activity also weighed on prices, with only light amounts of positioning by small speculators said to be providing support.
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Ample supplies in the commercial pipeline also weighed on values.
CBOT soybean futures held near unchanged at the close, but had posted large losses on Monday when the canola market was closed for Remembrance Day.
About 14,768 canola contracts traded on Tuesday, which compares with Friday when 20,680 contracts changed hands. Spreading accounted for 10,098 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade held within a narrow range on Tuesday, lacking any clear direction as the market consolidated after Monday’s losses. Soymeal was up on the day while soyoil was lower, with adjustments to the product spreads a feature of the activity.
The United States soybean harvest is estimated to be about 85 to 90 per cent complete ahead of the U.S. Department of Agriculture’s latest crop report out later in the afternoon.
Unseasonably cold temperatures across the Midwest could cause damage for the crops still standing, although any weather related strength was being countered by the relatively favourable South American conditions for seeding in Brazil.
Uncertainty over Chinese demand kept some caution in the bean market, as traders look for any fresh developments in the ongoing negotiations.
CORN was stronger, taking some direction from a rally in wheat.
Weekly US corn export inspections of just over half a million tonnes were nearly double what moved the previous week, but still behind the previous year’s data.
The U.S. corn harvest is thought to be about 65 to 70 per cent done.
WHEAT futures were up sharply on the back of solid export demand.
Weekly U.S. wheat export inspections of about 530,000 tonnes came in well above trade guesses that had topped out at 350,000. Total U.S. wheat exports during the marketing year to date are now running slightly ahead of the year ago level.
Continued harvest delays for the last ten per cent of Canada’s spring wheat crop were somewhat supportive.
