WINNIPEG – The ICE Futures canola market was weaker on Wednesday, hitting fresh lows for the recent downtrend as losses in Chicago soyoil weighed on values. European rapeseed was also lower, although soybeans and Malaysian palm oil both moved higher.
Tuesday’s close below C$680 per tonne in the January contract was bearish from a chart standpoint, keeping the bias pointed lower as speculators holding large short positions continued to pressure the market.
Scale-down end user demand provided some support on the other side, tempering the losses as domestic crush margins remain historically wide. Ideas that canola was looking oversold were also supportive.
Read Also
North American grain/oilseed review: Canola falls with soy complex
Glacier FarmMedia — ICE canola futures were weaker on Monday, as a selloff in the Chicago soy complex spilled over…
There were no deliveries against the November contract on the first notice day.
There were an estimated 28,557 contracts traded on Wednesday, which compares with Tuesday when 34,371 contracts traded. Spreading accounted for 16,648 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade held onto small gains on Wednesday despite heavy losses in soyoil and a mixed tone in soymeal.
The soybean harvest is in its final stages across the United States, with the nearby forecasts looking generally favourable for good progress.
Meanwhile, farmers in Brazil were still seeding their next soybean crop, with dryness in some areas and excess moisture in others reportedly causing some delays. Brazil’s AgRural pegged planting progress at 40 per cent complete, which compares with 46 per cent last year. If soybean seeding is delayed too long, that could limit opportunities for seeding the country’s second corn crop.
CORN futures were slightly weaker on Wednesday, with bearish chart signals behind some of the selling pressure as values dipped below nearby support.
Weekly U.S. ethanol data showed production of the renewable fuel at 1.052 million barrels per day, marking a slight increase from the previous week and the largest level since early August. Stocks dipped by 386,000 barrels, to 21.012 million barrels.
WHEAT was steady to mostly higher, with gains in the winter wheats and a mixed tone in Minneapolis spring wheat.
While no fresh business has been announced, China reportedly remains a good buyer of U.S. wheat as quality issues with China’s own crop are thought to have boosted demand.
Russian wheat exports may not live up to earlier expectations, according to a new outlook from SovEcon which cut their projections for wheat movement out of the country this year by 400,000 tonnes – now at 48.8 million tonnes.
The European Union has reportedly exported 9.6 million tonnes of wheat during the crop year to date, which was off last year’s pace by 24 per cent.
