By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 25 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, seeing some follow-through speculative selling after Monday’s sharp declines.
The market dropped to fresh contract lows in the process, although bargain hunting helped temper the declines.
Losses in Malaysian palm oil and Chicago Board of Trade soyoil futures contributed the weaker tone in canola, although CBOT soybeans were firmer on the day and the Canadian dollar held steady.
Ongoing concerns over the COVID-19 coronavirus outbreak remained a feature in the grain and oilseed markets. Blockades at railways and port facilities across Canada, in solidarity with anti-pipeline protestors in British Columbia, also kept some caution in the canola market.
About 38,468 canola contracts traded on Tuesday, which compares with Monday when 31,941 contracts changed hands. Spreading accounted for 32,952 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted small gains on Tuesday, seeing a modest recovery after Monday’s sharp coronavirus-related losses.
Reports of dryness hurting soybean crops in Argentina were also supportive. However, the advancing Brazilian harvest kept some pressure on the market.
Declines in Malaysian palm oil also weighed on soyoil, and tempered the upside in soybeans.
Political uncertainty in Malaysia contributed to the weakness in palm oil, as the country’s prime minister abruptly resigned on Monday.
CORN futures settled near unchanged, seeing some consolidation after yesterday’s declines.
Recent price weakness brought in some bargain hunting from end users, with a number of South Korean buyers reportedly in the market for corn from the United States.
WHEAT futures traded to both sides of unchanged, but managed to settle with small gains in the most active months as traders adjusted positions ahead of the month-end.
Fears over the COVID-19 coronavirus remained a feature in the background of the wheat market.
Locust swarms in Africa and into southwest Asia were also being followed by wheat traders.
Futures Prices as of February 25, 2020
Prices are in Canadian dollars per metric ton