By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 7 (MarketsFarm) – The ICE Futures canola market settled narrowly mixed on Wednesday, with the most active November contract unchanged at the final bell.
While gains in Chicago Board of Trade soybeans and other outside markets remained supportive, soyoil drifted lower and canola appeared to run into chart resistance.
A firmer tone in the Canadian dollar and ample visible supplies in the commercial pipeline also weighed on values.
On the other side, a slowdown in farmer selling provided some underlying support, as harvest operations wrap up across the Prairies.
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Ideas that canola was looking well priced compared to other oilseeds were also supportive.
About 34,336 canola contracts traded on Wednesday, which compares with Tuesday when 43,543 contracts changed hands. Spreading accounted for 27,454 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were mixed on Wednesday, with gains in the most active front months, but a softer tone in the more deferred positions.
The United States Department of Agriculture announced export sales of 132,000 tonnes of soybeans to China this morning, with an additional 120,000 tonne sale to other unknown destinations.
The USDA releases updated supply/demand estimates on Friday and traders will be watching to see if the government agency raises its projection for exports this year given the large purchases in recent weeks.
Ideas that dryness in Brazil could cut into the soybean crop there, and swing even more export demand to the U.S., were also supportive.
However, the good Midwestern harvest weather kept a lid on the upside.
CORN futures were also higher, with positioning ahead of Friday’s supply/demand report a feature.
Weekly U.S. ethanol data showed production of the renewable fuel at 923,000 barrels per day in the past week. That was up from the previous week, but still down four per cent from the same week a year ago. Ethanol stocks, at 19.67 million barrels, were down by 19,000 from the previous week.
WHEAT futures were stronger across the board. Dryness concerns in both the U.S. and the Black Sea region remained a supportive influence, helping Chicago wheat hit its highest levels in five years.
