By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Oct. 7 – ICE Futures Canada canola contracts were weaker on Wednesday, seeing some profit-taking after Tuesday’s gains as steady farmer selling and positioning ahead of the Thanksgiving long weekend weighed on prices.
A softer tone in CBOT soyoil and recent strength in the Canadian dollar were both bearish for canola. However, the currency turned lower late in the day, while soyoil finished well off its session lows.
Steady producer selling was thought to be becoming more of a factor in the futures. However, commercial demand was also there on the other side to keep the market range-bound overall.
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The USDA releases its latest monthly supply/demand report on Friday, and position squaring ahead of those numbers was another feature in the Canadian market.
About 17,016 canola contracts were traded on Wednesday, which compares with Tuesday when 25,007 contracts changed hands.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed three to four cents per bushel higher Wednesday, supported by expectations that US yields will be cut in an upcoming report.
Many analysts expect the report will show reduced soybean yields, which is bullish.
Exporters are focussed on moving soybeans, market watchers say, which further supported prices.
However, reports of strong yields from US farmers capped gains on Wednesday.
SOYOIL prices settled lower on Wednesday, tracking Malaysian palm oil.
SOYMEAL closed higher on Wednesday.
CORN futures closed one to two cents per bushel weaker Wednesday as markets positioned themselves of the upcoming report.
Many analysts expect the USDA will trim corn yields due to poor conditions throughout the growing season.
Despite those expectations, traders were hesitant as higher yields could bring sharp swings.
WHEAT futures in Chicago closed eight to nine cents per bushel weaker Wednesday on profit-taking ahead of the USDA report.
Analysts say the wheat market has been overbought, and ample global supplies are keeping investors uncertain.
However, the market is closely watching adverse weather in other growing regions.
Ukraine, Russia, and Australia are seeing poor growing conditions. If yields in those countries are reduced it would ease global supplies and increase room for US products within the market, which is bullish.
– Australia is expected see three months of dryness due to El Nino.
– Japan tendered for 120 thousand metric tonnes of food wheat for January.
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