By Phil Franz-Warkentin and Dave Sims, Commodity News Service
Winnipeg, Nov. 18 – ICE Futures Canada canola contracts were down on Wednesday, with speculative selling a feature as prices tested some of their lowest levels in two months.
The most active January contract hit a session low of C$465.00 per tonne at one point during the day, as bearish chart signals had fund traders adding to their growing net short positions, said traders.
Losses in CBOT soybeans and soyoil contributed to the weaker tone in canola, according to participants.
Read Also
North American Grain/Oilseed Review: Canola rises, down day for grains
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Friday despite weakness in most comparable…
However, canola managed to finish off its lows, as solid end-user demand and a lack of significant farmer selling provided support, according to participants.
Weakness in the Canadian dollar, which moved below 75 US cents, was also supportive for canola.
About 36,351 canola contracts were traded on Wednesday, which compares with Tuesday when 20,063 contracts changed hands. Spreading accounted for 25,750 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN prices ended 4 to 6 cents per bushel lower Wednesday as favourable weather conditions in South America increased fears world supplies could increase more than expected.
There is growing speculation Argentina could reduce its export tax on soybeans which would result in more soybeans being dumped onto the market.
Traders were positioning themselves somewhat ahead of tomorrow’s US export sales data, said an analyst.
SOYOIL drifted 3 cents lower in tandem with other vegetable oils.
SOYMEAL futures dipped slightly, due to weakening demand from the livestock sector.
CORN futures on the Chicago Board of Trade ended mixed.
Brazil’s corn crop is roughly 75 percent planted which is below last year’s pace of 92 percent planted.
China could be bargain-hunting for additional corn supplies to re-sell to their end-users, said an analyst.
WHEAT futures on the Chicago Board of Trade fell 2 to 4 cents lower Wednesday, feeling pressure from the strengthening US dollar.
The day began with some traders unwinding short contracts but that soon gave way to renewed selling, according to a report.
Some US traders say current market conditions make it almost impossible to move vomitoxin-laced wheat right now.
– Russian grain stocks were recorded at 43.7 million metric tons on Nov. 1 which is up 1.4% from the same date last year, according to the Russian government.
END
