By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 6 (MarketsFarm) – The ICE Futures canola market was stronger on Wednesday, but well off its highs for the session as the early buying interest subsided by the close.
The nearby November contract had traded as high as C$933.50 per tonne at one point during the session, but settled nearly C$11 below that – only up 50 cents on the day at C$922.80.
European rapeseed and Malaysian palm oil futures both hit fresh highs overnight, which spilled into the canola market. However, crude oil and soyoil were both weaker on the day, putting some pressure on canola.
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Canada’s tight supply situation continued to underpin the market as the futures work to ration demand going forward.
About 30,255 canola contracts traded on Wednesday, which compares with Tuesday when 34,016 contracts changed hands. Spreading accounted for 21,590 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, with seasonal harvest pressure accounting for some of the selling as progress has been running ahead of normal.
Losses in soyoil weighed on soybeans, with a correction in crude oil after its run-up to multi-year highs also bearish for the market.
However, soymeal was up on the day, as the product values saw some adjustment.
CORN was also down with seasonal harvest pressure. Some parts of the Eastern Corn Belt are forecast to see up to an inch of rain over the next week, which may lead to some delays. However, as in soybeans, progress is ahead of normal for this time of year.
Weekly U.S. ethanol data showed production of the renewable fuel at 978,000 barrels per day, up by 64,000 from the previous week. However, ethanol stocks tightened to 19.93 billion barrels.
WHEAT was higher on Wednesday, taking back yesterday’s losses as solid export demand provided some support.
Ukraine’s agriculture ministry cut their prediction for the country’s wheat crop to 31.5 million tonnes, down by half a million from an earlier estimate. Winter wheat seeding was nearly half done in the country.
Meanwhile, Russia’s agriculture minister lowered his forecast for wheat exports out of the country from 51 million down to 45-48 million.
