By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 27 (MarketsFarm) – The ICE Futures canola market was mostly weaker on Tuesday, as traders continued to book profits amid an overbought price sentiment.
Long liquidation in the nearby November contract was spilling into the deferred positions, ahead of the front month’s expiry.
Losses in Chicago Board of Trade soyoil and a firmer tone in the Canadian dollar were also bearish for canola.
However, recent strength in crush margins was keeping processors and exporters active on the buy side, despite the ample visible supplies in the commercial pipeline.
About 26,302 canola contracts traded on Tuesday, which compares with Monday when 25,103 contracts changed hands. Spreading accounted for 19,812 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, with speculative profit-taking a feature.
The United States soybean crop was 83 per cent harvested as of this past Sunday which was 10 points ahead of average for this time of year, according to a report from the U.S. Department of Agriculture.
Weekend precipitation across the Midwest may cause some delays for unharvested fields. However, the moisture was also welcomed to help replenish dry soils.
Seeding delays in Brazil remained supportive, although recent rains in the country should see the pace increase in the coming weeks.
CORN futures were lower, taking some direction from soybeans.
The U.S. corn harvest was 72 per cent complete in the latest weekly report, which was up 12 points from the previous week and ahead of the five-year average.
Markets were showing some caution ahead of the U.S. presidential election, only a week away.
WHEAT futures ended with small losses, after trading to both sides of unchanged throughout the session.
The U.S. winter wheat crop was 85 per cent seeded as of this past Sunday, which was up slightly from the five-year average of 80 per cent.
The first condition ratings of the year pegged the crop below trade expectations at 41 per cent good to excellent.
While the condition ratings provided some support, improving moisture prospects across the Plains weighed on values. Russia was also seeing some much needed precipitation.
Futures Prices as of October 27, 2020
Prices are in Canadian dollars per metric ton