By Dave Sims, Commodity News Service Canada
Winnipeg, February 7 (CNS Canada) – The ICE Futures Canada canola complex finished lower in choppy trading on Wednesday. Traders were positioning themselves ahead of tomorrow’s USDA supply and demand report as weakness in other vegetable oil markets pointed the way lower.
Rising estimates for the size of Brazil’s soybean crop were bearish.
The front-month contract slid below the psychologically-important C$500 per tonne mark.
However, weakness in the Canadian currency was supportive for canola as it made the commodity more attractive to international buyers.
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Commercial buying is on the slow side.
Around 27,004 canola contracts were traded on Wednesday, which compares with Tuesday when around 37,224 contracts changed hands. Spreading accounted for 19,380 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade fell Wednesday, on expectations rain will fall in Argentina this week.
Some traders took profits in the early going and then positioned themselves in advance of tomorrow’s USDA supply and demand report.
Most analysts expect the USDA to raise its projections for the U.S. carryout.
The corn market ended one cent higher in speculative trading.
Analysts believe tomorrow’s USDA report will lower Brazil’s corn production number by 1.7 million tonnes, and Argentina’s by 1.5 million tonnes.
Gains in weekly ethanol production figures were bullish. Last week production was pegged at 1.06 million barrels per day, which was up 17,000 barrels from the previous week.
Chicago wheat posted solid gains, taking strength from worries over dryness in the U.S. Plains.
There are ideas world wheat ending stocks will be lowered in tomorrow’s USDA report.
Ethiopia is shopping around for 400,000 tonnes of wheat.
