By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 10 (CNS Canada) – ICE Futures canola contracts were weaker on Wednesday, as bearish chart signals and spillover from declines in the Chicago Board of Trade soy complex weighed on values.
While cool and wet conditions continue to cause harvest delays across the Prairies, farmer deliveries were showing signs of picking up which brought some hedge pressure into the market, according to traders.
The recent move below the C$500 per tonne mark in the nearby November contract was also bearish from a chart-standpoint, and kept buyers on the sidelines.
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The United States Department of Agriculture releases updated production data on Thursday, and positioning ahead of the report accounted for some of the activity.
About 22,078 canola contracts traded, which compares with Tuesday when 17,680 contracts changed hands. Spreading accounted for 13,742 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were down sharply on Wednesday, as speculators booked profits following recent gains.
The United States soybean crop was 32 per cent harvested as of this past Sunday, according to the latest U.S. Department of Agriculture report. While the pace was four points off the average for this time of year, it was still a bit better than expected especially given the recent wet weather across the Midwest.
Good seeding conditions in Brazil and the ongoing trade dispute with China also weighed on soybeans.
The USDA releases updated supply/demand and production data on Thursday, and positioning ahead of the report kept some caution in the futures.
CORN futures posted small losses, with positioning ahead of Thursday’s USDA report a feature.
The U.S. corn crop was 34 per cent harvested in the latest weekly report, which was ahead of the normal pace for this time of year of 26 per cent done.
Condition ratings for what was still in the field declined slightly, losing one point in the top quality ratings to sit at 68 per cent good to excellent.
WHEAT futures were mixed, with losses in the winter wheats and a firmer tone in Minneapolis spring wheat.
U.S. winter wheat was 57 per cent seeded in the weekly report, which was slightly ahead of average. Emergence was pegged at 30 per cent.
Positioning ahead of tomorrow’s report was a feature, with wheat traders following the world and U.S. stocks data with interest.
