By Jade Markus and Dave Sims Commodity News Service Canada
Winnipeg, May 11 (CNS Canada) – ICE Futures Canada canola contracts were weaker Wednesday, handing back Tuesday’s advances.
On Tuesday canola followed Chicago Board of Trade soybeans higher, but the market corrected lower throughout the day on Wednesday, amid investor uncertainty about fund-buying in US markets.
Traders say canola could follow US soybeans higher in future sessions, if aggressive fund-activity continues in that market.
The Canadian dollar gained ground against its US counterpart on Wednesday, tracking gains in crude oil, which further pushed canola lower.
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A stronger loonie makes canola less appealing to foreign buyers.
Weather concerns in parts of the Prairies are keeping the market underpinned, but beneficial rains in Saskatchewan and Manitoba had a bearish effect on prices.
About 48,339 canola contracts were traded on Wednesday, which compares with Tuesday when 55,451 contracts changed hands.
Milling wheat, durum, and barley futures were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures corrected 3 to 6 cents per bushel lower Wednesday, as traders booked profits on the heels of yesterday’s steep gains.
Some traders also shied away from the market for fear that the rally in prices could encourage farmers to plant more acres, according to a report.
Brazil’s vegetable association lowered its soybean crop estimate for the country from 99.7 million tonnes to 98.6 million tonnes.
Soyoil finished 8 to 10 points lower taking direction from soybeans.
SOYMEAL futures continued to rally higher in the wake of yesterday’s report which slashed world production estimates.
Corn futures on the Chicago Board of Trade trended 2 to 3 cents lower Wednesday on reports that US farmers will reap 14.43 billion bushels of corn this year.
Cooler, dry weather is forecast for the US Midwest this week which is expected to aid the corn crop.
However, the corn market took some strength from gains in crude oil, a trader said.
Cheaper prices for gasoline could also lead to a bump in ethanol usage, according to multiple reports
Wheat futures on the Chicago Board of Trade suffered losses of 2 to 3 cents per bushel Wednesday, taking some direction from soybeans.
Scattered showers are forecast for some regions of the US Southern Plains which was bearish for values.
Russian wheat exports increased substantially in the first quarter, rising to 5.4 million tonnes over last year’s figure of 3.1 million tonnes.
– The US is set to receive 61,000 tonnes of wheat from the United Kingdom, its largest wheat import ever from that country.
– A new report says the currency in Ukraine is weakening so much it could give the country a clear advantage over Russia, and its much more stronger ruble, when it comes to exports.
– India’s foodgrain production in 2015/16 registered at 252.23 million tonnes in 2015/16 which was deemed relatively flat by market-watchers.
