By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 21 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Wednesday, as a move below nearby chart support had speculators on the sell side.
In addition to the bearish technical signals, canola was also pressured by declines in the Chicago Board of Trade soy complex, according to traders.
Improving weather conditions in parts of Western Canada and a lack of significant end user buying interest added to the softer tone.
However, more than enough areas of concern remain across the Prairies to keep some weather premiums in the market, which helped limit the losses.
Read Also
North American Grain/Oilseed Review: Canola loses momentum, grains up-and-down
Glacier FarmMedia — Canola futures on the Intercontinental Exchange could not hang onto gains from this morning and ended the…
Tightening old crop supplies and the need to ration some demand going forward also provided some support, according to participants.
About 21,439 canola contracts traded on Wednesday, which compares with Tuesday when 21,950 contracts changed hands. Spreading accounted for 9,958 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although wheat prices were revised after the close.
WHEAT futures in Chicago finished four to eight cents lower on Wednesday, after rain fell in parched regions of the Northern US Plains. The moisture should help improve the quality of the crop, which has been disappointing so far this year.
Traders took profits in the early going which set the tone for the remainder of the day.
On the other side, Japan is looking to buy 135,000 tonnes of milling wheat.
CORN futures in Chicago fell roughly one cent on Wednesday in technical trading.
According to the USDA, weekly ethanol production declined by roughly 12,000 barrels a day compared to last week, which was bearish.
However, Tropical Storm Cindy is expected to dump a lot of moisture in the Mississippi Delta which could disrupt grain loadings, and be supportive.
SOYBEAN futures at the Chicago Board of Trade finished nine to 11 cents per bushel lower due to follow-through selling and favourable weather conditions in the US Midwest.
There are reports that Chinese crushers have purchased 500,000 tonnes of Brazilian soybeans.
Ideas persist that next week’s USDA acreage estimates will show larger soybeans acres than originally projected.
SOYOIL futures ended 17 to 25 points lower on Wednesday.
SOYMEAL futures also finished weaker.
