By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, Feb. 18 – The ICE Futures Canada canola market ended lower on Wednesday, falling along with the declining Chicago soybean and soyoil markets.
Profit taking and a pickup in farmer selling of Canadian, US and South American oilseeds after Tuesday’s rally were also bearish, analysts said.
Further downward pressure came from expectations that South America’s soybean crop will be very large, despite a slower than normal start to harvest.
However, steady commercial and speculative buying interest limited the declines.
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Weakness in the Canadian dollar was also supportive, as it made canola more attractive to crushers and exporters.
About 23,336 contracts changed hands on Wednesday, which compares with Tuesday when 29,685 contracts traded. Spreading accounted for 16,972 of the trades.
Milling wheat, durum and barley futures were all untraded, though the Exchange moved wheat prices lower after Wednesday’s close.
SOYBEAN futures in Chicago corrected 12 to 13 cents per bushel lower Wednesday, as US farmers unloaded supplies onto the market amid ideas soybeans may have been overbought. Selling was triggered in many cases when values broke through the psychologically important US$10 a bushel level at the close of yesterday’s session, according to a trader.
Favourable weather in South America was also bearish as Brazilian farmers harvest what could be a record crop.
China has begun to celebrate the Chinese New Year which caused many offices to close early and may have cut into buying, participants said.
SOYOIL futures in Chicago finished 32 points lower Wednesday, following soybeans and feeling pressure from losses in Malaysian palm oil.
SOYMEAL futures ended slightly lower following soybeans.
CORN futures in Chicago sunk five to six cents per bushel lower Wednesday as a lack of bullish news, strength in the US dollar, profit-taking and spillover pressure from wheat and oilseeds weighed on values.
Weakness in crude oil is also bearish as it makes ethanol less desirable among refineries.
Ukraine is expected to plant seven per cent less corn this year, according to a report.
WHEAT futures in Chicago declined seven to eight cents per bushel Wednesday. Kansas City Board of Trade futures were down 13 to 14 cents as overall strength in the US dollar pressured export sales of US wheat.
Reports that Egypt cancelled a recent bid for supplies from the US, citing prices were too expensive, were also bearish. Wheat may also have been overbought, suggested participants.
Though, worries about dry conditions becoming a problem for winter wheat in the US Southern Plains limited the losses, according to a report.
• In France, the sown area of wheat (winter and spring) for this year will increase to 5,142,000 hectares. That is up 2.7% compared to last year, according to a report.
• As of February 1, 2015, Ukraine had stocked 22 million tonnes of grains (including 6.9 million tonnes of wheat) trader said.
• A government report indicate India is set to harvest 257 million tonnes of grains in the current crop year, which is a 3.2 percent drop from the previous year’s record output.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
