By Jade Markus and Dave Sims, Commodity News Service Canada
ICE Futures Canada canola ended mixed on Wednesday as fund-selling pressured front contracts.
Canola’s technical bias is to the downside, which has spurred a round of investor-selling.
Favourable crop conditions across most of Western Canada added pressure to the market.
Volatility in the Canadian dollar against its US counterpart throughout the day caused some turbulence in the market.
Spillover support from Chicago Board of Trade soy oil added some support to far contracts.
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About 31,288 canola contracts traded on Wednesday, which
compares with Tuesday when 44,460 contracts changed hands. Spreading accounted for about 11,130 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures trended mostly higher on a technical rebound in the wake of yesterday’s large losses.
Lower crop production prospects in South America were also supportive for US values.
However, softness in the US dollar helped limit the losses, according to a report.
Soyoil finished 19 points higher.
SOYMEAL futures dropped with spreading against soyoil a feature of the day’s activity.
Corn futures ended 3 to 5 cents per bushel lower Wednesday on ideas the market was overbought.
Both the July and September contracts drifted below the key technical support level of US$4.00 a bushel.
Favourable weather in the US Midwest also weighed on values.
Wheat futures on the Chicago Board of Trade were mostly lower with the exception of the July contract which was slightly higher.
Rain in the US Midwest has caused delays in the wheat harvest which was bullish.
Recent rains in France and across much of Europe has raised fresh concerns over potential outbreaks of fungal disease.
– Intense rain showers across much of China in May appears to have taken its toll on the country’s wheat crop. As much as 10 million tonnes may be downgraded to feed use, according to a report.
– Ukraine’s wheat production has been pegged at 23.3 million tonnes by UkAgroConsult. That is 1.3 million tonnes more than the previous estimate.
