By Phil Franz-Warkentin, MarketsFarm
Winnipeg, July 17 (MarketsFarm) – The ICE Futures canola market was weaker at Wednesday’s close, after trading to both sides of unchanged in thin and choppy activity.
Declines in Chicago Board of Trade soyoil and strength in the Canadian dollar put some pressure on values, as crush margins weakened.
The large old crop supplies, improving Western Canadian crop conditions and ongoing concerns over Chinese demand also weighed on values.
However, chart support held to the downside, with uncertainty over new crop production also helping limit losses.
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About 10,525 canola contracts traded on Wednesday, which compares with Tuesday when 14,671 contracts changed hands. Spreading accounted for 4,854 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved lower on Wednesday, after trading to both sides of unchanged in choppy activity.
Forecasts calling for cooler Midwestern weather contributed to the selling pressure, although the nearby weather remains hot.
CORN also traded to both sides of unchanged on Wednesday, but managed to hold onto small gains at the close.
Ideas that more intended corn acres in the United States went into the Prevent Plant program than originally though provided some underlying support, according to participants. However, the improving nearby forecasts tempered the upside, with speculative profit-taking also weighing on prices.
Uncertainty over the size of the U.S. corn crop should keep the corn market on edge until the U.S. Department of Agriculture releases updated acreage estimates in August.
WHEAT futures ended lower, with speculative positioning a feature.
The U.S. missed out on the latest Egyptian tender, as the major wheat buyer sourced 60,000 tonnes from Russia instead.
The advancing U.S. winter wheat harvest also weighed on values, despite running a bit behind normal.
Improving crop conditions in Russia and the Black Sea region were another bearish influence on wheat.
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