By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, Sept. 16 (MarketsFarm) – The ICE Futures canola market rallied to new contract highs on Wednesday, as bullish technical signals had speculators adding to their large long positions.

The most active November contract managed to settle above long-term chart resistance around C$530 per tonne, with a rally in Chicago Board of Trade soybeans and soyoil provided the catalyst for the gains.

A lack of significant selling pressure on the other side, as farmers are busy with harvest operations and other sellers appear content to watch prices climb higher, was also supportive.

About 36,749 canola contracts traded on Wednesday, which compares with Tuesday when 28,790 contracts changed hands. Spreading accounted for 26,266 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade hit new highs on Wednesday, as good export demand encouraged fund buying.

The United States Department of Agriculture announced private export sales of 327,000 tonnes of soybeans to China this morning, continuing a run of solid demand from the country.

Fund buying was a feature in the bean market, with the move back above US$10 per bushel in the November contract bullish from a chart standpoint.

However, ideas that soybeans were looking overbought kept a lid on the upside especially with the bulk of the harvest fast approaching.

Hurricane Sally made landfall Wednesday morning, bringing flooding along the U.S. Gulf Coast. Shipping delays along the Mississippi River are also expected.

Malaysian palm oil hit fresh contract highs in overnight trade, which was supportive for soyoil.

CORN futures were also up on the day, taking some direction from the rally in beans.

Solid Chinese demand and reports that typhoon damage in the country may cut into their own production by up to 10 million tonnes were also supportive

U.S. ethanol production averaged 926,000 barrels per day in the latest weekly report, which was down 14,000 from the previous week. Stocks of the renewable fuel tightened to a five-week low of 19.8 million barrels.

WHEAT futures were up in sympathy with soybeans and corn.

Reports of dryness hampering winter wheat seeding in Ukraine provided some support.

Egypt bought 235,000 tonnes of wheat in its latest tender, but all of it was sourced from Russia and Poland, with none of it from the U.S.