By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Jan. 23 (CNS Canada) – ICE Futures canola contracts settled with small gains on Wednesday, after trading to both sides of unchanged in choppy activity.
Advances in Chicago Board of Trade soybeans and soyoil provided some spillover support for canola, while nearby technical signals were also said to be pointing higher.
However, canola already moved higher on Tuesday, when soybeans moved lower, and adjustments to the spreads between the two commodities saw canola lag to the upside on Wednesday.
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Concerns over Chinese demand and a firm tone in the Canadian dollar also tempered the upside in canola.
About 29,742 canola contracts traded on Wednesday, which compares with Tuesday when 26,127 contracts changed hands. Spreading accounted for 21,242 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were higher on Wednesday, with dry weather in some key soybean growing regions of Brazil behind some of the buying interest.
Private forecasters Informa Economics released United States acreage projections for 2019 today, predicting soybean area to drop by nearly 3 million acres on the year, to 86.2 million.
Uncertainty over Chinese demand kept some caution in the market. While reports that the U.S. had cancelled trade talks with China were being denied today, the lack of information on that front tempered the upside.
CORN held relatively steady on the day, lacking any clear direction as the market remains stuck in a sideways trading range.
Brazilian weather concerns were also supportive for corn the corn market.
Informa forecast U.S. corn area would increase to 91.5 million acres this spring, which would be up by about 2.4 million on the year.
All three U.S. WHEAT markets were higher on the day, amid ideas that U.S. wheat is seeing more demand on the international market. Egypt, the world’s largest wheat importer, bought some U.S. wheat in its latest tender.
However, the lack of firm export data, given the ongoing U.S. government shutdown, kept some caution in the market.
Reports out of both Russia and Ukraine are pointing to a possible slowdown in wheat exports from the Black Sea region, which would open the door for more U.S. business.
