By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, March 9 (CNS Canada) – ICE Futures Canada canola contracts were down on Wednesday, as a rally in the Canadian dollar weighed on the market.
The currency was up by nearly a full cent relative to its US counterpart, cutting into crush margins and making exports less attractive to international buyers.
Bearish technical signals added to the softer tone, as the May contract ran into resistance around C$460.
Reaction to the USDA’s monthly supply/demand report was subdued as far as canola was concerned, with the numbers released this morning generally deemed neutral for soybeans.
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However, gains in soyoil, which was up about half a cent per pound, did provide underlying support for canola, according to participants.
About 13,405 canola contracts were traded on Wednesday, which compares with Tuesday when 12,123 contracts changed hands. Spreading accounted for about 5,674 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade closed about one to two cents per bushel stronger on Wednesday as the United States Department of Agriculture (USDA) reduced their estimates of global soybean stocks.
The USDA expects world soybeans stocks at the end of the 2015/16 season will total 78.9 million metric tonnes, down from the 80.4 million tonnes estimated in February.
However ample domestic stocks limited gains on Wednesday, as the USDA expects 12.5 million tonnes of soybeans by the end of the 2015/16 season.
SOYOIL prices settled stronger on Wednesday, tracking Malaysian palm oil.
SOYMEAL closed weaker on Wednesday.
CORN futures closed about one cent per bushel weaker on Wednesday as global stockpiles were smaller than expected, and domestic stockpiles were unchanged, but still higher than last year’s numbers.
The USDA estimates global corn stocks for the 2015/16 season at 207 million metric tonnes, down from February’s estimate of 208.8 million tonnes.
Gains in crude oil prices limited losses on Wednesday.
WHEAT closed two to three cents per bushel stronger on Wednesday, supported by USDA data.
The USDA left domestic stockpile projections unchanged from last month’s estimates at 26.3 million tonnes as of May 31.
Many market watchers had expected an increase, so the news was bullish.
World stockpiles were pegged at 237.6 million metric tonnes, revised downward from February’s estimate of 238.9 million tonnes, which also supported prices.
– Forecasted rain throughout the US Delta and Midwest regions could hamper spring wheat seeding.
– Egypt’s new quarantine head will continue enforcing zero-ergot laws, according to reports.
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