By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 29 (MarketsFarm) – The ICE Futures canola market settled with small gains in the most active months on Wednesday, with speculative positioning a feature.
Gains in Chicago Board of Trade soyoil provided some spillover support, while solid demand from domestic crushers also underpinned the futures.
However, old crop supplies remain large and the thinly traded nearby May contract was down as traders exited the front month ahead of its expiry. Uncertainty over demand amid the COVID-19 pandemic also remained a bearish factor in the background.
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About 16,455 canola contracts traded on Wednesday, which compares with Tuesday when 15,835 contracts changed hands. Spreading accounted for 10,616 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday. Gains in equity and energy markets provided some support, as global economic sentiment improved and many countries eased their coronavirus measures.
The United States Department of Agriculture reported a private export sale of 108,000 tonnes of soybeans to Mexico, adding to the firmer tone.
However, large South American crops remained a bearish influence in the background.
CORN futures held onto small gains, although losses in wheat tempered the upside potential.
An executive order from U.S. President Donald Trump requiring slaughterhouses and meat packing plants stay open helped underpin corn, as the order was seen reduced some concerns over declining feed demand.
However, demand from the ethanol sector remains poor as the latest U.S. report showed the eighth-straight week of production cuts for the renewable fuel.
WHEAT futures were weaker, with improving weather conditions in some wheat growing regions of the world behind the selling pressure.
A lack of moisture in Europe and the Black Sea region had lent support to wheat recently. However, the dry areas were seeing much needed precipitation, taking that weather premium out of the market.
