By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, November 30 – THE ICE Futures Canada canola market posted solid gains on Wednesday, pushed upwards by advances in Chicago Board of Trade soyoil.
Gains in crude oil and European rapeseed futures contributed to the upside.
Traders were likely adjusting positions as the March contract had slightly heavier volumes than the front-month January contract.
Demand for oilseeds is steady and crushers continue to stay busy.
However, on the other side of the coin, losses in CBOT soybeans and Malaysian palm oil were bearish for values.
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The Canadian dollar was slightly stronger relative to its US counterpart, which made canola less desirable to foreign buyers.
Technical selling appears likely, according to a report.
Milling wheat, barley and durum were untraded.
About 44,625 canola contracts traded on Wednesday which compares with Tuesday when 23,949 contracts changed hands. Spreading accounted for about 32,560 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade lost seven to ten cents per bushel Wednesday, pressured by speculative long-liquidation.
Traders are unwinding positions moving into the end of the month, which is bearish.
Mostly favourable seeding conditions in Brazil added to the downside.
However, advances in the soy oil market limited the downside on Wednesday.
SOYOIL prices advanced on Wednesday, tracking Malaysian palm oil.
SOYMEAL closed weaker on Wednesday.
CORN futures were mostly unchanged on Wednesday.
Sharp advances in the crude oil market underpinned corn, but spillover weakness from the soybean and wheat markets limited advances.
New York Mercantile crude oil futures gained close to 10 per cent in the front contract by close on Wednesday, which is bullish for corn, due to the commodity’s link to biofuel.
But the liquidation seen in nearby commodity markets moved some corn contracts a quarter to three-quarters of a US cent per bushel lower.
WHEAT closed three to seven cents per bushel weaker on Wednesday, pressured by technical selling as the December contract moves closer to expiry.
However, strong demand for high-quality wheat limited the downside.
