By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 19 (MarketsFarm) – The ICE Futures canola market was weaker on Wednesday, as sharp declines in the Chicago Board of Trade soy complex encouraged some speculative profit-taking in the canola market.
Forecasts calling for much needed rain across dry areas of Western Canada over the next few days were also bearish, although the extent of the moisture remains to be seen.
Tight old crop supplies remained a supportive influence, tempering the declines. The general uptrend also remains intact, making any declines a buying opportunity from a chart standpoint.
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Weakness in the Canadian dollar was also supportive.
About 19,623 canola contracts traded on Wednesday, which compares with Tuesday when 18,312 contracts changed hands. Spreading accounted for 6,762 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, as broad selling in many financial markets spilled into the grains and oilseeds.
Chart-based speculative profit-taking was a feature, while heavy losses in world vegetable oil markets saw soyoil post the largest declines of the soy complex.
The active Midwestern seeding pace and relatively favourable crop conditions also weighed on prices.
However, good demand and tight old crop supplies remained supportive.
The United States Department of Agriculture announced a private export sale of 142,500 tonnes of soybeans to Mexico this morning for delivery in the new crop year.
CORN was steady to lower on the day, seeing some consolidation after recent gains.
Forecasts are calling for rain in parts of Brazil over the next week which would help ease dryness concerns there. However, the rainfall looks minimal and more will be needed through the growing season.
The USDA announced private exports of 1.36 million tonnes of new crop corn to China this morning, marking the third million-tonne-plus sale to the country in a row.
WHEAT futures were down across the board, pressured by expectations for improving North American crop conditions.
A crop tour of U.S. winter wheat growing regions is underway this week, with early results out of Kansas pointing to above average yields.
Rising wheat production estimates out of Europe were also bearish. Coceral pegged the European Union crop at 145.8 million tonnes. That would be up by 4.3 million from an earlier estimate and nearly 12 million tonnes above the USDA’s preliminary forecast.
