By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 17 (MarketsFarm) – The ICE Futures canola market was mostly higher Tuesday, hitting fresh multi-year highs in the front months as solid end user demand and bullish technical signals provided support.
Chicago Board of Trade soybeans and soyoil also hit multi-year highs, providing spillover support for canola.
With canola exports running well ahead of the year-ago pace, the need to ration some of that demand contributed to the speculative buying interest.
However, ideas that the market is looking overbought tempered the upside to some extent. Scale-up hedge selling also slowed the advances.
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About 27,363 canola contracts traded on Tuesday, which compares with Monday when 19,143 contracts changed hands. Spreading accounted for 20,630 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade hit fresh four-year highs on Tuesday, with concerns over tightening ending stocks in the United States behind some of the buying interest.
Better-than-expected export and domestic crush data released on Monday remained supportive on Tuesday, with the market working to ration some of that demand.
Persistent weather concerns in South America also remained supportive, although recent rainfall has helped ease those concerns to some extent.
CORN futures were also up on the back of solid demand and tightening supplies.
The recent strength in soybeans has caused the corn/soybean spread to widen, making corn look less attractive as a planting option for next spring. Resulting ideas that some corn acres could shift to soybeans were supportive.
The U.S. Department of Agriculture announced private export sales of 195,000 tonnes of corn to Mexico this morning.
WHEAT futures were lower, with forecasts calling for beneficial rains across the U.S. Plains behind some of the selling.
The U.S. winter wheat crop was 96 per cent seeded as of this past Sunday, according to the latest USDA crop report, which was slightly ahead of normal.
The crop was rated 46 per cent good to excellent. That was an improvement of one point on the week, but still slightly off the 52 per cent good to excellent seen at this time last year.
