By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 20 (MarketsFarm) – The ICE Futures canola market settled steady to higher on Wednesday, taking some direction from the Chicago Board of Trade soy complex.
Solid demand from both exporters and domestic crushers added to
the firmer tone. A lack of significant farmer selling, as
producers focus on spring fieldwork, was also supportive.
However, canola showed signs of running into resistance from a
chart-standpoint, with the July contract hard pressed to break above the C$475 per tonne mark.
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About 9,250 canola contracts traded on Wednesday, which compares with Tuesday when 15,335 contracts changed hands. Spreading accounted for 3,900 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday. Gains in soymeal accounted for some of the spillover buying in beans, as the meal market recovered off of contract lows hit on Tuesday.
Recent strength in world vegetable oil markets was also supportive, with soyoil posting solid gains over the past week.
However, uncertainty over Chinese demand kept some caution in the bean market, as traders wait to see more buying come forward under the Phase One trade deal.
CORN futures were down slightly, taking back some of their recent gains as values hovered just above the lows set in April.
The good seeding pace across the Midwest and continued soft demand from the ethanol sector put some pressure on values, despite signs of some improvement on the ethanol front.
Weekly United States ethanol data showed a slight increase in the country’s ethanol production for the third-straight week, with the 663,000 barrels per day in line with trade expectations.
WHEAT futures were up sharply, with the biggest gains in Chicago soft wheat.
Chart-based buying was a feature in wheat, as the nearby July Chicago contract bounced off of major chart support just under US$5.00 per bushel.
Declining quality ratings in some parts of the U.S. wheat belt added to the gains. Although large world wheat supplies remained a bearish influence overhanging the market.
