By Dave Sims, Commodity News Service Canada
Winnipeg, December 27 (CNS Canada) – Canola contracts on the ICE Futures Canada platform suffered losses on Wednesday. The market was volatile today as canola was trying to catch up to soybeans in the early going before being pressured by action in the Canadian currency.
The Canadian dollar was higher relative to its United States counterpart, which made canola less attractive to international buyers.
This year’s large canola crop has raised the prospect there will be more ending stocks than previously expected, which was bearish.
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“Whoever’s long on canola is bailing out,” said a trader in Winnipeg.
However, demand for oilseeds is steady and gains in Malaysian palm oil were supportive.
Crush margins inched slightly higher today.
Around 32,179 canola contracts were traded on Wednesday, which compares with Friday when around 22,051 contracts changed hands. Canadian markets were closed on December 26 for Boxing Day. Spreading accounted for 18,326 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended two to three cents lower on Wednesday. The market initially rose in speculative trading but ultimately suffered losses as traders took profits.
Weakness in soymeal also undermined the market.
However, China bought 110,000 tonnes of soybeans from the United States, which was supportive.
Corn futures were up one cent, taking strength from technical buying.
The corn market received some spillover support from the wheat market.
Slow farmer selling in the U.S. was supportive.
Chicago wheat futures finished five to six cents stronger on Wednesday as worries grew about cold weather in the U.S. Plains. A lack of snow cover on the ground could set the stage for reduced yields next year, according to an analyst.
Weakness in the U.S. dollar was supportive for wheat.
However, Russia dumped half a million tonnes of wheat from its state reserve onto the market, which was bearish.
