By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, March 23 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Wednesday, as losses in CBOT soyoil and other outside vegetable oil markets weighed on prices.
Chart based selling contributed to the declines, as canola backed away from nearby resistance. An increase in farmer hedges was another factor, according to a broker who said some producers took advantage of the recent strength in the market to do some forward pricing.
On the other side, the Canadian dollar was down by over three quarters of a cent relative to its US counterpart which was supportive for crush margins and exporter demand.
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About 22,425 canola contracts were traded on Wednesday, which compares with Tuesday when 24,311 contracts changed hands. Spreading accounted for about 12,722 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed four to six cents per bushel weaker on Wednesday, as prices moved lower with investor profit-taking.
Prices had reached a five-month-high earlier in the week, which encouraged traders to pull back from the market on Wednesday.
Market watchers say the soybean market may be overbought.
A stronger US dollar added to the declines, as it makes the commodity less appealing to foreign buyers.
SOYOIL prices settled lower on Wednesday.
SOYMEAL closed weaker on Wednesday, tracking losses in nearby grain and oilseed markets.
CORN futures closed one to two cents per bushel lower on Wednesday, as prices were pressured by profit-taking.
Abundant global supplies were also bearish for corn, especially as many analysts expect a prospective plantings report from the United States Department of Agriculture (USDA) to show an increase in seeded area compared with soybeans and wheat.
Spill over pressure from wheat was also a feature on Wednesday.
WHEAT closed three to four cents per bushel weaker on Wednesday, as traders’ focus turned back onto high global supplies.
Snowfall in some parts of the US was bearish, as it will improve soil moisture—prices had been propped up in previous sessions by dryness concerns.
A weaker US dollar added to the bearish tone on Wednesday.
– Japan plans on importing 5,600 tonnes of feed-wheat, according to reports on Wednesday.
– Egypt is close to eliminating graft in its strategic sector, the country’s supply minister says.
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