By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 13 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Wednesday, taking some direction from a downturn in Chicago Board of Trade soybeans.
Bearish technical signals contributed to the declines, with some stops hit on the way down as prices dipped below nearby support.
Relatively favourable North American crop conditions also weighed on values, with recent rainfall helping improve the yield potential greatly in many areas. However, some regions may be starting to get too wet, while others missed out on the moisture, according to participants.
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About 34,181 canola contracts traded, which compares with Tuesday when 38,263 contracts changed hands. Spreading accounted for 27,230 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were down sharply on Wednesday, as attention shifted back to the weather following Tuesday’s short-lived reaction to the United States Department of Agriculture’s latest numbers.
Crop conditions are generally thought to be good across most of the Midwest, with no real weather threats in the nearby forecasts.
Concerns that the U.S. will impose tariffs on China as early as this Friday also weighed on beans, as China would retaliate with tariffs of its own.
CORN was also pressured by good Midwestern weather and trade concerns, but only posted small losses as tightening stocks projections remained supportive.
Good demand from the ethanol sector also helped temper the declines in corn.
WHEAT futures were all lower, taking back all of Tuesday’s gains as speculators moved back to the sell side.
The advancing U.S. winter wheat harvest added to the soft tone, although production was hurt by adverse growing conditions this year.
Weather concerns in both Russia and Australia also remained supportive for wheat.
Minneapolis spring wheat lagged the Chicago and Kansas City winter wheat’s to the downside, finding some support from private estimates predicting that U.S. spring wheat seeded area may end up about half a million acres below earlier estimates.
