The ICE Futures canola market was weaker on Tuesday, with the largest losses in the front months. The narrowing of the old/new crop spread was a feature, with the new crop months making brief attempts at turning higher throughout the session.
Losses in crude oil weighed on the grains and oilseeds, including canola, with reports that Russian soldiers were backing away from the Ukrainian border behind much of the broad weakness seen in many commodity markets on Tuesday.
Speculative profit-taking contributed to the losses in the Canadian oilseed, with declining basis levels for nearby delivery also seen as a sign that end users were likely covered for the time being, according to participants.
About 17,154 canola contracts traded on Tuesday, which compares with Monday when 20,558 contracts changed hands. Spreading accounted for 9,294 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, as the selloff in crude oil brought on by the easing tensions along the Russia/Ukraine border spilled into the market.
Soybeans were also pressured by the latest weather forecasts out of South America calling for more rain beneficial rain in dry areas of Argentina. Meanwhile, harvest operations continue to move forward in Brazil.
Speculative profit taking added to the declines, as beans backed away from nearby highs.
The latest data from the National Oilseed Processors Association (NOPA) showed that 182.2 million bushels of soybeans were processed in the United States in January. That was well below average trade guesses and the year ago level for the month.
The U.S. Department of Agriculture announced private export sales of 101,000 tonnes of soybeans to Mexico this morning.
CORN was also pressured by the reports of easing tensions between Russia and Ukraine, which led to a bout of profit-taking.
Crude oil was down by over three per cent on the day, adding to the softer tone in the ethanol-linked grain.
WHEAT was also weaker on the news of the Russian troops pulling away from the Ukrainian border.
Rising production estimates out of the Black Sea region and forecasts calling for some welcome moisture in dry areas of the US Plains added to the selling pressure.
