By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 26 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, setting fresh contract highs as bullish chart signals provided support.
Canola had started the day on the defensive, but the early profit-taking quickly faded and speculators returned to the buy side.
Tight supplies and the need to ration demand contributed to the firmer tone in canola.
However, choppy activity in the Chicago Board of Trade soy complex kept some caution in the market. Soyoil was weaker at the close while soybeans held within a narrow range. Ideas that canola is looking overpriced at current levels also tempered the advances.
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ICE canola mixed at midday Friday
Glacier FarmMedia —The ICE Futures canola market was narrowly mixed at midday Friday, consolidating near unchanged to end the week….
About 29,642 canola contracts traded on Tuesday, which compares with Monday when 25,547 contracts changed hands. Spreading accounted for 21,636 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade traded to both sides of unchanged on Tuesday, but eventually managed to move higher in the most active months despite continued weakness in soyoil.
Solid export demand was a supportive influence, with the United States Department of Agriculture reporting flash sales this morning of 199,000 tonnes of soybeans to China and an additional 125,730 to Mexico.
Talk of a possible truckers strike in Brazil was also supportive, although good seeding weather and expectations for a large crop in the South American country were bearish on the other side.
The U.S. soybean harvest was 73 per cent complete as of this past Sunday. That was up 13 points from the previous week and slightly ahead of the 70 per cent average for this time of year.
CORN was up on Tuesday with speculative positioning a feature.
The U.S. corn harvest was 66 per cent complete in the latest weekly report, which was well ahead of the 53 per cent average for this time of year.
WHEAT was weaker at the final bell after trading to both sides of unchanged throughout the session.
Tight supplies of higher quality milling wheat remained supportive for Minneapolis spring wheat.
U.S. winter wheat was 80 per cent seeded as of this past Sunday, which was in line with the five-year average. Emergence came in at 55 per cent, with a good-to-excellent rating of 46 per cent.
