By Phil Franz-Warkentin, MarketsFarm
Winnipeg, July 3 (MarketsFarm) – The ICE Futures canola market moved lower in most months on Wednesday.
A stronger tone in the Canadian dollar and improving crop prospects in parts of Western Canada contributed to the declines.
However, gains in the Chicago Board of Trade soy complex helped temper the losses.
Chart support also held to the downside, with the November contract settling right above C$450 per tonne.
Most markets in the United States will be closed Thursday for Independence Day, while canola futures will trade their usual hours. Positioning ahead of the U.S. holiday was a feature.
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About 11,437 canola contracts traded on Wednesday, which compares with Tuesday when 13,951 contracts changed hands. Spreading accounted for 4,114 of the contracts traded.
CORN futures at the Chicago Board of Trade were sharply higher on Wednesday, as the nearby chart signals shifted back to the upside and encouraged some speculative buying interest.
Ideas that corn acres in the United States won’t live up to the U.S. Department of Agriculture’s expectations remained supportive, with yields also likely hurt by the excessive moisture that delayed seeding this year.
Average weekly ethanol production in the U.S. hit 1.08 million barrels per day during the last week of June, an increase of 9,000 from the previous week, according to data released Wednesday morning. Stocks of the renewable fuel were also up on the week.
SOYBEANS were up in sympathy with corn as traders adjusted positions ahead of the Independence Day holiday.
Talk that China may be looking to buy more U.S. soybeans, in an effort to help trade talks move along, provided some support.
Ideas that U.S. yields will be down this year, due to late seeding and adverse crop conditions, also underpinned the futures.
WHEAT futures were higher, taking some direction from the rally in corn.
Speculative positioning was a feature, with relatively bearish fundamentals tempering the upside.
Improving weather conditions for the U.S. winter wheat harvest kept the gains in check, with better-than-expected yields and protein levels being reported so far.
