By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, March 14 (CNS Canada) – ICE Futures Canada canola contracts posted losses on Wednesday, as declines in the Chicago Board of Trade soy complex encouraged some speculative selling after Tuesday’s move higher.
Large old crop canola supplies still overhanging the market and early expectations for another big crop in 2018 also weighed on values.
However, recent weakness in the Canadian dollar provided underlying support, according to participants. The longer term technical signals also remained pointed higher for canola.
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About 12,576 canola contracts traded on Wednesday, which compares with Tuesday when 25,586 contracts changed hands. Spreading accounted for 5,316 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were down sharply on Wednesday, with speculative selling accounting for some of the weakness as traders booked profits after Tuesday’s gains.
Expectations that farmers in the United States will seed record large soybean acres this spring also weighed on prices.
Ongoing weather concerns in Argentina provided some support, as recent rainfall wasn’t enough to alleviate the dry conditions there. However, it’s getting too late for any moisture to be of much benefit.
The U.S. is reportedly considering imposing tariffs on Chinese electronics and other products, renewing concerns that China may impose retaliatory tariffs of its own on U.S. imports including soybeans.
CORN futures ended with small losses, as the market retreated from earlier advances after running into resistance. A slowdown in demand from the ethanol sector also weighed on values.
Expectations for a decline in seeded corn area in the U.S. this year provided some support.
WHEAT futures were mixed, with gains in the Kansas City and Chicago winter wheat contracts and a softer tone in Minneapolis spring wheat.
The ongoing dryness concerns across the U.S. Plains helped many contracts see a bit of a recovery after yesterday’s profit-taking correction lower.
However, world wheat supplies remain large and ideas that U.S. wheat was looking expensive on the global export market kept a lid on the upside.
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