Source: Canadian Cattlemen
By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 23 (MarketsFarm) – The ICE Futures canola market was weaker on Tuesday, retreating from earlier gains in choppy activity.
Advances in Chicago Board of Trade soyoil and a softer tone in the Canadian dollar had helped canola strengthen in early activity, with the front months nearing the contract highs hit last week.
However, canola ran into chart resistance and speculative profit-taking came forward to weigh on values.
Ideas that end users are well covered for the time being added to the eventual declines, as demand may be rationed to the point that fresh business is no longer coming forward.
The underlying fundamentals of tight supplies do remain supportive overall, tempering the eventual declines.
About 23,319 canola contracts traded on Tuesday, which compares with Monday when 18,171 contracts changed hands. Spreading accounted for 10,748 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, as advances in soyoil spilled over to pull beans up as well.
Solid global demand for vegetable oil accounted for much of the strength. However, the advancing Brazilian harvest and some much needed moisture for soybeans in Argentina did pressure prices.
The United States Department of Agriculture’s planting intentions report will be released on March 31, and positioning ahead of the report should be a feature over the next few days. General expectations are for an increase in both soybean and corn acres on the year, but the extent of any changes remains to be seen.
CORN posted small gains, recovering from Monday’s declines as solid export demand remained supportive.
Delays seeding Brazil’s second corn crop contributed to the advances, with 86 per cent of intended acres in the ground, according to reports. That compares with the 96 per cent average.
The Texas corn crop was 38 per cent seeded as of this past Sunday, which was up eight points from the previous week and in line with the average pace for this time of year.
WHEAT futures were higher, correcting after recent losses.
The gains came despite improving U.S. winter wheat condition ratings, as recent moisture across the southern Plains helped alleviate dryness concerns.
The Kansas winter wheat crop was rated 45 per cent good to excellent, which was up seven points on the week. Europe and the Black Sea region have also seen some improvement lately.