ICE canola futures were stronger on Wednesday, taking back Tuesday’s losses as the market continued to consolidate above the five-month lows hit last week.
Chicago soyoil was also higher, providing some spillover support for the Canadian oilseed. European rapeseed was up on the day as well, but soybeans and Malaysian palm oil were lower.
While tight old crop supplies remained supportive, the new crop harvest is progressing rapidly amid relatively favourable weather conditions.
There were 38,976 contracts traded on Wednesday, which compares with Tuesday, when 44,742 contracts changed hands. Spreading accounted for 21,206 of the contracts traded.
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ICE canola holding onto gains at midday Wednesday
Glacier FarmMedia — The ICE Futures canola market was holding onto small gains at midday Wednesday, consolidating in a narrow…
SOYBEAN futures at the Chicago Board of Trade were weakened for the second session in a row Wednesday, as soft export demand and positioning ahead of Friday’s monthly supply/demand estimates from the United States Department of Agriculture weighed on values.
Chinese demand for U.S. soybeans continues to be lacking, with that buying interest shifting to South America instead amid the ongoing trade dispute.
Average pre-report projections ahead of Friday’s USDA report call for small cuts to soybean yields and production from the August estimates. However, the crop should still be very large.
CORN was also pressured lower by relatively favourable production prospects ahead of Friday’s report.
While U.S. corn production is expected to be revised lower, the crop will still likely be record-large.
WHEAT futures were lower across the board, with soft global demand behind some of the weakness.
Increased harvest pressure out of Russia added to the softer tone in the U.S. futures.
U.S. wheat supplies are generally expected to tighten in Friday’s data, while average trade guesses call for an increase in world stocks.
