By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 2 (MarketsFarm) – The ICE Futures canola market was narrowly mixed at Wednesday’s close, managing to turn higher in the most active months late in the day after posting losses for most of the session.
Gains in Chicago Board of Trade soybeans and soyoil provided underlying support throughout the session, with soybeans setting fresh contract highs. However, a trader noted that canola had outpaced its U.S. counterpart earlier in the crop year and was now lagging to the upside as the spreads between the two oilseeds saw some readjustment.
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Tight old crop canola supplies remained supportive, although demand was being rationed at current price levels.
About 19,487 canola contracts traded on Wednesday, which compares with Tuesday when 25,511 contracts changed hands. Spreading accounted for 8,076 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, hitting fresh contract highs once again as bullish technical signals remained supportive.
Solid export demand contributed to the gains, with the United States Department of Agriculture announcing private export sales of 380,000 tonnes to unknown destinations this morning.
Production uncertainty in South America was also supportive, with a number of forecasters lowering their projections for the continent.
The U.S. domestic crush hit a new monthly record in December, with 198.2 million bushels processed, according to a report.
CORN was weaker, dropping in sympathy with wheat despite the gains in soybeans.
There were 485.8 million bushels of corn crushed for ethanol production in the U.S. in December, marking the second highest monthly total on record.
WHEAT moved lower, with the largest losses in the Chicago and Kansas City winter wheat contracts. Forecasts calling for some welcome moisture in the dry Southern Plains were behind some of the selling pressure.
However, the ongoing tensions between Russia and Ukraine kept some caution in the wheat market, as the two countries are major world wheat exporters.
