By Dave Sims, Commodity News Service Canada
Winnipeg, June 6 (CNS Canada) – Canola contracts on the ICE Futures Canada platform finished slightly weaker Wednesday in technical trading.
Losses in Chicago Board of Trade soyoil and soybeans were bearish for prices.
“Also, large funds have been in liquidation mode,” said a trader in Winnipeg. “I think we have the funds under 10,000 contracts on the long side now.”
Buying has also been sluggish over the past few days, which weighed on the market.
“No new business with China this week,” the trader added.
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However, dry conditions in Western Canada, particularly along the southern Alberta/Saskatchewan border, were supportive for values.
Around 19,843 canola contracts were traded on Wednesday, which compares with Tuesday when around 21,828 contracts changed hands. Spreading accounted for 9,856 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures ended lower Wednesday in fund liquidation.
The market was feeling a bit of pressure from the accelerating pace of soybean planting in the United States. As well, roughly three quarters of the U.S. crop is in good or excellent shape, which surpassed expectations.
The July/November spread is near its widest range in over a decade.
Corn futures finished weaker, weighed down by weather forecasts calling for rain to fall in the U.S. Midwest.
There are ideas that Mexico could slap tariffs on U.S. corn imports in response to recent trade penalties imposed on it by the U.S.
However, demand for ethanol remains reasonably strong, which helped limit the losses.
Chicago wheat recorded solid gains on Wednesday, amid mounting concerns about dryness problems in Australia and Russia.
Farmers in Kansas have begun harvesting their winter wheat, but some reports indicate there are quality issues and some crops were abandoned.
Continued dry weather in the U.S. Southern Plains lent some support to values.
