By Dave Sims, Commodity News Service Canada
Winnipeg, November 14, (CNS Canada) – The ICE Futures Canada canola market finished lower on Tuesday, following losses in the U.S. soy complex. The canola market was pressured as soon as trading opened due to the steep drop in U.S. soyoil on Monday. Canadian markets were closed then due to Remembrance Day.
Rain in Northern Brazil has improved growing conditions for soybeans, which was bearish.
Canola is looking vulnerable to a technical sell-off, according to a trader in Winnipeg. The next rung down for chart support is around the C$505 per tonne mark.
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Crush margins have been backing up over the past few days too.
However, recent weakness in the Canadian dollar has been supportive for canola.
Around 13,546 canola contracts were traded on Tuesday, which compares with Friday when around 12,897 contracts changed hands. Spreading accounted for 6,290 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished six cents lower on Tuesday.
Rain fell in northern Brazil over the weekend with more showers forecast during the next week, which was bearish for values.
Weekly export inspections were quite strong, which helped limit the losses.
According to the United States Department of Agriculture, the U.S. soybean harvest is 93 percent complete, up from last week’s rating of 90 percent.
The corn market ended four cents weaker in speculative trade while some investors booked profits.
Funds are short in the market close to a quarter of a million contracts.
The U.S. harvest is pegged at 83 percent complete, well below the average of 91 percent.
The Chicago wheat market finished one to three cents higher on Tuesday.
The USDA announced the sale of 133,000 tonnes of corn to unknown destinations.
Winter wheat conditions in the U.S. got slightly worse last week with just 54 percent of the crop rated good to excellent, down one percent from the previous week.
