By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 5 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, climbing above nearby resistance as gains in outside markets provided support.
Malaysian palm oil, European rapeseed and Chicago Board of Trade soyoil futures all posted solid gains, with that buying interest spilling into the canola market. Chart-based buying added to the advances.
Canada’s tight supply situation was also supportive, as the market continues to work to ration demand.
However, export movement has already backed away at these high price levels, with ideas the market is looking overpriced.
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About 34,016 canola contracts traded on Tuesday, which compares with Monday when 32,691 contracts changed hands. Spreading accounted for 23,152 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, with a rally in Malaysian palm oil and other world vegetable oil markets providing the catalyst for the rise. Soyoil led beans higher, with meal settling with small losses.
The United States soybean harvest was 34 per cent complete in the latest weekly U.S. Department of Agriculture report. That was in line with expectations, but well ahead of the 26 per cent average for this time of year
Meanwhile, farmers in Brazil are reportedly just getting started seeding their next crop, with an estimated four per cent of intended acres in the ground. Some private estimates predict soybean area in the South American country could hit 100 million acres this year.
CORN was lower, feeling some seasonal harvest pressure.
The U.S. corn harvest was pegged at 29 per cent done, up from the average of 22 per cent. Good-to-excellent ratings were left unchanged at 59 per cent.
Corn planting in Brazil was thought to be about a third complete.
Strength in crude oil was supportive for the ethanol-linked grain.
WHEAT was lower, seeing some profit-taking after recent gains.
The U.S. winter wheat crop was 47 per cent seeded, according to the latest USDA report, only one point ahead of average.
Gains in European wheat futures were somewhat supportive, with increasing talk that Russia may impose export quotas also helping temper the losses.
