By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Feb. 10 (CNS Canada) – ICE Futures Canada canola contracts moved higher on Wednesday, seeing a modest correction after Tuesday’s break below chart support.
Weakness in the Canadian dollar and advances in CBOT soyoil both contributed to the buying interest in canola, as that combination was supportive for crush margins. A trader noted that domestic processors continue to show solid demand as they continue to operate at close to full capacity.
End user bargain hunting was also supportive, with some fresh export business reportedly taking place after Tuesday’s declines.
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About 40,446 canola contracts were traded on Wednesday, which compares with Tuesday when 27,912 contracts changed hands. Spreading accounted for about 32,996 of the contracts traded, with participants rolling their positions out of the nearby March contract a feature.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed unchanged to one cent per bushel lower on Wednesday as favourable weather in South America weighed on prices.
The region is expected to see favourable weather for production and harvest, which is bearish.
Data from the United States Department of Agriculture showing high global stocks of soybeans added pressure for a second day on Wednesday.
SOYOIL prices settled stronger on Wednesday.
SOYMEAL closed weaker on Wednesday, as analysts say the commodity is in a downtrend short-term.
CORN futures closed about one cent per bushel weaker on Wednesday, as pressure from the USDA report pushed prices lower for a second day due to a lack of fresh news in the market.
Analysts say corn is in narrow trading range short-term.
WHEAT closed three to four cents per bushel stronger on Wednesday as investor short-covering pushed prices back up from a two month low.
However, the market still has a bearish tone, analysts say, as the USDA’s global stock estimates were high, especially as US wheat is largely uncompetitive.
– Bunge has is allegedly suing Egypt’s state grain buyer over a rejected cargo of wheat. The French wheat was contaminated with ergot, reports say.
– India is expected to see declines in wheat production this year, market watchers say.
END
