By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 18 (MarketsFarm) – The ICE Futures canola market was mostly stronger on Monday, seeing a continuation of the previous week’s gains as strength in outside vegetable oil markets provided support.
Malaysian palm oil and Chicago soyoil futures were both up on the day, which spilled over to underpin canola.
Canada’s tight supply situation was also supportive, although a broker noted that demand was already being rationed at current price levels.
With crush margins in negative territory, he said there was no real reason for canola to go any higher on its own, but the strength elsewhere was enough to provide support.
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About 19,758 canola contracts traded on Monday, which compares with Friday when 27,183 contracts changed hands. Spreading accounted for 14,658 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, as a rally in soyoil and other vegetable oil markets provided support.
Solid exports added to the firm tone, with weekly United States export inspections of about 2.3 million tonnes, up by about 500,000 tonnes from the previous week.
However, signs of slowing economic growth in China tempered the advances somewhat, as the country is a major buyer of U.S. soybeans and any issues there could cut into world demand.
Seasonal harvest pressure also weighed on prices.
CORN moved higher on Monday, despite seasonal harvest pressure and the large U.S. supply expectations.
The U.S. corn harvest is thought to be about half complete.
Weekly U.S. corn export inspections came in at just under a million tonnes.
WHEAT was mixed, with losses in Minneapolis spring wheat and gains in the winter wheats.
Spring wheat was said to be due for a bit of a correction, after hitting fresh highs last week amid concerns over the size of this year’s North American crop.
Meanwhile, conditions are thought to be looking relatively favourable for the U.S. winter wheat crop.
