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North American grain/oilseed review: Canola climbs above resistance

| 2 min read

By Phil Franz-Warkentin

 

Glacier FarmMedia MarketsFarm—The ICE Futures canola market was stronger on Tuesday, as chart-based positioning provided support.

A move back above C$600 per tonne in the November contract was bullish from a technical standpoint, with gains in Chicago soybeans and soyoil providing spillover support. European rapeseed and Malaysian palm oil were also higher on the day.

Grain workers at the Port of Vancouver went on strike Tuesday morning, keeping some caution in the market as a prolonged work stoppage would hurt export movement. Strength in the Canadian dollar also tempered the gains.

There were an estimated 51,891 contracts traded on Tuesday, which compares with Monday when 59,646 contracts traded. Spreading accounted for 23,348 of the contracts traded.

 

SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, led by a rally in soyoil as new Chinese economic stimulus measures provided support. Speculative short-covering and ongoing concerns over dryness in Brazil slowing seeding operations added to the gains.

The United States soybean harvest was 13 per cent complete as of this past Sunday, according to the latest U.S. Department of Agriculture report. That was in line with expectations and five points ahead of the five-year average.

Condition ratings were left unchanged at 64 per cent good to excellent.

 

CORN was backed away from early advances to settle with small losses. Spillover from wheat contributed to the declines.

The U.S. corn harvest was 14 per cent done in the latest weekly report, running slightly behind expectations by ahead of the five-year average of 11 per cent.

The crop held steady on the week at 65 per cent good to excellent.

 

WHEAT had moved higher overnight but was unable to hold onto gains, with speculative positioning behind some of the weakness.

The U.S. spring wheat harvest was nearing completion, with 96 per cent off the field in the latest report. Meanwhile, winter wheat seeding in the country hit 25 per cent complete, up one point from the five-year average.

Dryness in Ukraine was somewhat supportive, cutting into expectations for the winter wheat crop there.