By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 8 (MarketsFarm) – The ICE Futures canola market settled mixed on Wednesday, with gains in the front months and losses in the more deferred positions. Intermonth spreading was a feature as speculators were rolling positions out of the nearby May contract.
Losses in Chicago Board of Trade soyoil put some pressure on values, while a slightly softer tone in the Canadian dollar provided support.
Positioning ahead of Thursday’s supply/demand report from the United States Department of Agriculture kept some caution in the grains and oilseeds.
Ongoing uncertainty over the COVID-19 pandemic also remained a feature in the background.
About 30,409 canola contracts traded on Wednesday, which compares with Tuesday when 14,626 contracts changed hands. Spreading accounted for 21,374 of the contracts traded.
SOYBEAN futures in Chicago held near unchanged on Wednesday, lacking any clear direction as traders squared positions ahead of Thursday’s supply/demand report from the United States Department of Agriculture.
Estimates ahead of the report are wide ranging, with most analysts calling for an upward revision to the U.S. ending stocks forecast but tighter world supplies.
Logistical issues moving soybeans out of South America have largely been resolved for the time being, although additional delays are likely.
CORN futures posted small losses, taking back some of Tuesday’s gains.
U.S. ethanol data showed production of the renewable fuel at only 672,000 barrels per day in the latest weekly report. That marked the lowest daily production since data first started to be recorded. Meanwhile, ethanol stocks climbed sharply, despite the reduced production, as demand has been cut considerably due to the coronavirus.
However, optimism over possible crude oil production cuts from OPEC did lend some support.
WHEAT futures were narrowly mixed with gains in the hard wheat futures, but a softer tone in Chicago soft wheat.
Relatively favourable crop conditions across the U.S. put some pressure on values, as winter wheat exists dormancy.
Meanwhile, reports that some other exporting countries were putting limits on wheat exports provided some support.
Futures Prices as of April 8, 2020
Prices are in Canadian dollars per metric ton