By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Sept. 21 (CNS Canada) – ICE Futures Canada canola contracts were down on Wednesday, as the market backed away from the one-month highs hit on Tuesday.
Losses in the Chicago Board of Trade soy complex provided the catalyst for the speculative selling pressure in canola, according to participants. The recent strength in the market also likely brought in more farmer hedges. However, a trader noted that actual deliveries into the commercial pipeline remain slow for this time of year, with harvest delays providing some support.
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Uncertainty over Chinese demand kept some caution in the market, although participants are hoping a visit by China’s Premier to Ottawa this week may lead to a resolution to the disagreement over dockage allowances.
About 21,025 canola contracts were traded on Wednesday, which compares with Tuesday when 37,311 contracts changed hands. Spreading accounted for 14,252 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were down by eight to 14 cents per bushel on Wednesday, as the market ran into chart-resistance and traders took back most of Tuesday’s gains.
Soybeans were due for a correction after posting solid advances the previous four sessions. The November contract moved above both its forty and fifty day moving averages on Tuesday, which left the door open to profit-taking, according to traders.
The advancing US harvest was another bearish influence, as the market braces itself for a record large crop despite any nearby weather related delays.
SOYOIL futures were down on Wednesday, as the market backed away following Tuesday’s rally.
SOYMEAL futures were down on Wednesday, following soybeans.
CORN futures in Chicago were steady to down one cent per bushel on Wednesday, as the market consolidated within a narrow range amid a lack of any fresh fundamental news.
Seasonal harvest pressure and the large US crop prospects remained bearish influences in the background, especially as the condition ratings remain very high across most of the Midwest.
Corn futures also moved above some key moving averages yesterday, but ran into selling pressure at the highs.
WHEAT futures in Chicago were up by one to three cents per bushel on Wednesday.
Wheat remains stuck within a rather narrow ten cent range, as ample world supplies continue to overhang the market, said traders.
However, tightening nearby supplies of hard red winter wheat in the US were especially supportive for the Kansas City futures, which provided some support for the other wheat contracts as well.
News of a US export sale to Morocco was also supportive.
