By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 19 (CNS Canada) – ICE Futures canola contracts were weaker in choppy activity for most of Wednesday’s session, but managed to settle with small gains.
Losses in Chicago Board of Trade (CBOT) soybeans weighed on values for most of the session.
Ample supplies in the commercial pipeline and only routine demand also pressured values. However, a slowdown in farmer selling ahead of the holidays helped temper the declines.
Supportive technical signals, a firm tone in CBOT soyoil and continued weakness in the Canadian dollar also provided underlying support.
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About 24,162 canola contracts traded, which compares with Tuesday when 36,578 contracts changed hands. Spreading accounted for 16,264 of the contracts traded.
Chicago Board of Trade soybean futures were weaker on Wednesday, seeing a correction after recent gains.
The United States Department of Agriculture (USDA) reported flash sales of 1.2 million tonnes of soybeans to China this morning, confirming recent rumours that business was picking up to the country.
However, soybeans already rose on Tuesday on talk of the export shipments and failed to see follow through strength on Wednesday.
Relatively favourable South American crop prospects also weighed on beans, although dryness concerns are starting to pop up in parts of Brazil.
CORN futures were lower, following wheat and soybeans.
Weekly U.S. ethanol production held steady in the latest report. Supplies of the renewable fuel increased, despite reports that a number of plants were shutting down due to poor margins in the sector.
Ukraine’s agriculture ministry pegged the country’s corn crop this year at 35.5 million tonnes, which would be up by half a million from the USDA’s current estimate.
WHEAT futures were lower, seeing some follow-through selling after Tuesday’s declines with speculative profit-taking a feature.
Continued competition from Russian wheat exports on the global market also weighed on values. While exportable Russian supplies are reportedly tightening, weakness in the Russian ruble was making Russian wheat more attractive to global buyers while cutting into the demand for U.S. wheat.
