By Dave Sims, Commodity News Service Canada
Winnipeg, December 20 (CNS Canada) – Canola contracts on the ICE Futures Canada platform finished mostly higher on Wednesday, after a day of choppy trading.
Much of the activity was spread-based as traders were moving from the front-month January contract to March. Markets close early on Friday and there is just three days of trading next week so participants were already beginning to hit the exits from the trading floor.
European demand for bio-diesel is expected to be on the upswing according to a trader in Winnipeg, which lent support to values.
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There is speculation the market is technically oversold.
However, losses in U.S. soybeans and soyoil were bearish for canola.
The weather continues to improve in Argentina, which should help that country’s soybean crop.
Around 23,238 canola contracts were traded on Wednesday, which compares with Tuesday when around 24,445 contracts changed hands. Spreading accounted for 14,906 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade fell one to two cents lower on new reports indicating just 10 per cent of Brazilian soybean fields needed rain. On top of that, parts of Argentina needing moisture were pegged at just 15 to 20 per cent.
U.S. export sales are on the sluggish side.
According to the USDA, China plans to lower the amount of foreign material it allows in imports of U.S. soybeans.
Corn futures rose one cent on Wednesday as traders covered short positions.
However, ethanol production in the U.S. was pegged at 1.08 million barrels a day, which was down 12,000 barrels from the previous week.
Wheat futures finished three to four cents stronger on Wednesday, as speculation grew that looming frigid temperatures in the U.S. Plains could damage the winter wheat crop.
Traders are making some old-crop new-crop spread adjustments before they take off for holidays.
The fundamental situation looks weak but the low prices are drawing in bargain-hunters.
