By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, September 16 – SOYBEAN futures at the Chicago Board of Trade closed two cents per bushel lower to two cents per bushel higher Wednesday as analysts say the market has run into resistance post-rally.
Despite weakness in nearby months, soybean futures are seeing a couple bullish factors.
China is booked to receive 184,500 metric tonnes of soybeans over the 2015-16 season.
The news is especially bullish as demand concerns have been keeping oilseed prices under pressure, analysts say.
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Additionally, a report from the Farm Service Agency said poor weather prevented domestic growers from planting 2.22 million soybean acres, which is also bullish.
SOYOIL prices settled higher on Wednesday as crude oil prices firmed.
SOYMEAL closed weaker on Wednesday.
CORN futures closed two to four cents per bushel lower Wednesday as market watchers say demand for the commodity is low.
Additionally, farmers in the western Corn Belt are reporting good yields despite poor weather earlier in the season, which is bearish.
WHEAT futures in Chicago closed five to seven cents per bushel weaker Wednesday as favourable seeding conditions for US winter wheat pressured prices further.
Wheat has been consistently plagued by high global supplies and a lack of demand.
Analysts say US stockpiles could reach 900 million bushels or more by the end of the crop year, which is bearish.
– Iran has said it will not need to import wheat this year due to high domestic stocks.
– Jordan has tendered 100,000 tonnes of hard wheat from Romania and the Black Sea area, analysts say.
The ICE Futures Canada canola market finished higher Wednesday, with values taking strength from gains in US soyoil.
Wet weather continues to hamper harvest efforts across parts of Western Canada which helped to underpin the market.
Chart-based trading was a feature of today’s activity with values staying locked within a tight trading range.
According to a trader, canola’s November contract is seeing support around the C$460 per tonne level and resistance at $475 per tonne.
That could change though depending on what the US Federal Reserve decides regarding the interest rate at a meeting tomorrow. If a hike is announced, canola will likely be affected by the currency action.
However, losses in US soybeans and Malaysian palm oil were bearish for values.
The harvest is slowly advancing which added some pressure to the market as well.
The Canadian dollar was higher relative to its US counterpart which made canola less attractive to out-of-country buyers.
A total of 16,389 canola contracts traded on Wednesday, which compares with Tuesday when around 18,564 contracts changed hands.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
