North American grain/oilseed review: Canola nears chart resistance
By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm — The ICE Futures canola market was stronger on Wednesday, nearing major chart resistance as gains in outside vegetable oil markets provided support.
An overnight rally in Malaysian palm oil to contract highs lent support to the world vegetable oil markets. The escalating conflict in the Middle East also brought more buying interest into the agricultural commodities. Chicago soyoil futures were also higher on the day, although soybeans were lower.
The November canola contract settled just below the psychological C$620 per tonne level, with farmer selling reportedly coming forward near the highs.
There were an estimated 57,212 contracts traded on Wednesday, which compares with Tuesday when 68,186 contracts traded. Spreading accounted for 39,252 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade settled with small losses on Wednesday, as support from gains in soyoil was countered by the bearish influence of large declines in soymeal.
Early yield reports for the United States soybean crop look reasonably favourable, with rains in the forecast for dry parts of Brazil also weighing on prices. The moisture should help farmers in the South American country make progress seeding their next crop.
Monthly U.S. crush data showed 167.54 million bushels of soybeans crushed in August, which was down 13.3 per cent from the previous month and about one per cent off the August 2023 level.
Strikes at ports along the U.S. East Coast and Gulf of Mexico could disrupt grain movement from the country if the labour dispute lasts for any significant time.
CORN remained pointed higher, finding support from gains in wheat.
The escalating conflict in the Middle East was a major market driver for the grains, with traders also keeping an eye on news out of Ukraine and Russia.
Weekly U.S. ethanol production of 1.015 million barrels per day was up by about 21,000 from the previous week. Stocks of the renewable fuel fell by 65,000 barrels, to 23.459 million.
WHEAT futures were sharply higher amid declining production estimates out of Russia where drought conditions are impeding the emergence and seeding of the next winter wheat crop.
Egypt, the world’s largest wheat importer, announced a deal Wednesday that will see the country import about half a million tonnes of Black Sea origin wheat a month for six months beginning in November.
