By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, Oct. 13 (MarketsFarm) – The ICE Futures canola market was stronger on Wednesday, seeing a modest correction after Tuesday’s selloff.

Malaysian palm oil climbed to fresh contract highs in overnight activity, which was supportive for vegetable oil markets in general – including canola. Chicago Board of Trade soyoil futures were also up on the day, although soybeans were softer.

While seasonal harvest pressure contributed to the losses in soybeans, the Canadian canola harvest is virtually complete and a lack of significant farmer selling was said to be supportive.

The Canadian dollar was firmer on the day, putting some pressure on canola.

About 23,623 canola contracts traded on Wednesday, which compares with Tuesday when 37,778 contracts changed hands. Spreading accounted for 18,614 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, seeing some follow-through selling after Tuesday’s declines.

The United States Department of Agriculture pegged soybean yields in the country at 51.5 bushels per acre on Tuesday, which was above average trade guesses. The government agency also raised its ending stocks projections to 320 million bushels, at the high end of pre-report expectations.

The advancing harvest also weighed on prices, with harvest progress pegged at 49 per cent complete across the U.S.
However, gains in soyoil and palm oil were supportive, with a move by India to cut its import taxes on palm oil to zero taking palm oil to record highs overnight.

The USDA announced private export sales of 330,000 tonnes of soybeans to China and an additional 198,000 tonnes to other unknown destinations this morning.

CORN was also pressured by follow-through selling after yesterday’s bearish USDA report.

U.S. corn yields were pegged at 176.5 bushels per acre by the USDA, while ending stocks were also raised.

Seasonal harvest pressure was another bearish influence, with 41 per cent of the U.S. corn crop off the field as of this past Sunday.

The USDA announced private corn sales of 161,000 tonnes to unknown destinations.

WHEAT lower, taking some direction from the declines in soybeans and corn.

While tightening world wheat stocks remained supportive, a lack of fresh bullish news weighed on values.

U.S. winter wheat plantings are running in line with the average, at 60 per cent complete.