By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Jan. 31 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Wednesday, backing away from nearby highs as participants booked profits on the final trading day of the month.
The nearby March contract hit a session high of C$499 per tonne at one point, but ran into resistance as values neared the psychological C$500 per tonne level.
Losses in Chicago Board of Trade soybeans and a firmer tone in the Canadian dollar contributed to the selling pressure in canola, according to participants.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
However, solid end-user demand and a lack of significant farmer selling pressure provided some underlying support. Persistent South American weather concerns kept some caution in the futures as well.
About 17,007 canola contracts traded on Wednesday, which compares with Tuesday when 24,189 contracts changed hands. Spreading accounted for 13,464 of the contracts traded.
Soybean futures at the Chicago Board of Trade were down on Wednesday, as month-end positioning and ideas that recent advances were overdone brought in some speculative selling.
Concerns over hot and dry weather conditions in Argentina have largely been priced into the futures for the time being, and there is some rain in the longer term forecasts.
Corn futures were steady to lower, taking some direction from the declines in soybeans and wheat. Profit-taking was a feature, as corn traded near the upper edge of its long-standing sideways range.
However, the USDA reported a private export sale of 145,000 tonnes of U.S. corn to unknown destinations which provided some support.
U.S. wheat futures were all lower, as traders booked profits after yesterday’s rally in Kansas City hard red winter wheat.
Improving conditions for Australia’s wheat crop also weighed on values, especially as world supplies remain relatively large overall.
On the other side, the U.S. dryness concerns that boosted wheat yesterday remained supportive as condition ratings in a number of key U.S. wheat growing states are looking rather poor.
