Glacier FarmMedia — ICE canola futures settled within 50 cents of unchanged in the most active months on Wednesday, lacking any clear direction as the market consolidated after seeing large price swings in recent sessions.
Gains in the Chicago soy complex provided underlying support, as the markets in the United States reacted to news China had lowered its import tariffs on U.S. soybeans.
However, the ongoing lack of significant movement on trade talks between Canada and China continued to overhang the market.
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ICE canola narrowly mixed at midday
Glacier FarmMedia — The ICE Futures canola market was narrowly mixed at midday Wednesday, seeing some consolidation after the large…
The federal budget released Tuesday included a new biofuel initiative and a push to diversify trade — both of which would increase the potential demand for canola.
There were 33,795 contracts traded on Wednesday, down slightly from Tuesday when 35,351 contracts changed hands. Spreading accounted for 19,638 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, as news China had lowered its import tariff for soybeans from the United States to 13 per cent provided some support.
However, South American soybeans are still cheaper and data on any actual Chinese purchases of U.S. soybeans was lacking amid the ongoing government shutdown.
CORN held onto small gains Wednesday, with solid export demand thought to be underpinning the market.
Strong demand from the ethanol sector contributed to the gains. The U.S. Energy Information Administration (EIA) reported weekly U.S. ethanol production of 1.123 million barrels per day, which was up by 32,000 barrels from the previous week.
Supplies of the renewable fuel increased to 22.655 million barrels as of Oct. 31.
WHEAT futures were mixed, with gains in the winter wheats and losses in spring wheat.
Talk that China was looking at buying more U.S. wheat was supportive, with seasonal price trends also underpinning the futures.
The U.S. Department of Agriculture will release delayed supply/demand estimates on Nov. 14.
