By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 7 (MarketsFarm) – The ICE Futures canola market was stronger on Thursday, holding near the upper end of its three-month trading range.
Gains in Chicago Board of Trade soyoil futures provided underlying support, with bullish technical signals adding to the gains. Crude oil was also up on the day, after an early profit-taking correction, which was supporting world financial markets.
Canada’s tight supply situation remained another bullish influence in the background, although that has been factored into the futures for some time.
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Strength in the Canadian dollar and ideas that canola is overpriced at current levels tempered the advances.
About 28,978 canola contracts traded on Thursday, which compares with Wednesday when 30,255 contracts changed hands. Spreading accounted for 23,630 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, with soyoil leading beans higher. Broad strength in outside energy and equity markets was supportive for the grains and oilseeds in general. Weakness in the United States dollar was another supportive influence.
Weekly U.S. soybean export sales of just over a million tonnes were down slightly from the previous week, but at the higher end of trade guesses.
The U.S. Department of Agriculture also announced additional flash sales of 261,000 tonnes of soybeans to Mexico this morning.
Seasonal harvest pressure tempered the advances. Positioning ahead of next week’s monthly USDA supply/demand report also kept some caution in the bean market.
CORN found some spillover support from the gains in soybeans and turn higher in crude oil.
Weekly US corn export sales beat expectations at 1.26 million tonnes. The USDA announced additional sales of 314,000 tonnes to Mexico.
Harvest pressure and positioning ahead of next week’s report kept the gains in check. General expectations ahead of the data call for an increase in U.S. corn ending stocks from earlier forecasts.
WHEAT ended mixed, with gains in Minneapolis spring wheat and losses in the winter wheats.
Weekly U.S. wheat export sales of about 333,000 tonnes were up on the week and in line with expectations. Mexico and South Korea were the major buyers.
Average estimates ahead of next week’s USDA report call for a slight downward revision to world wheat ending stocks, given production issues in a number of regions of the world – including Canada.
