By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, April 27 (CNS Canada) – ICE Futures Canada canola contracts were mostly lower on Wednesday, as fund traders took profits on their recently acquired long positions and commercial end users kept to the sidelines.
Losses in CBOT soyoil contributed to the softer tone in canola, according to traders.
Exporters and domestic crushers were said to be showing a reluctance to keep buying at these higher price levels, while steady hedge selling continued on the other side.
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However, tightening old crop supplies and the need to keep some weather premiums in the futures heading into the new growing season provided underlying support.
About 25,918 canola contracts were traded on Wednesday, which compares with Tuesday when 27,722 contracts changed hands. Spreading was a feature, accounting for 15,274 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed one cent per bushel stronger to seven cents per bushel weaker on Wednesday as fund buying brought strength to front contracts.
Strong demand for the oilseed added support.
But reports of drier weather in Argentina pressured the market, as prices had been propped up by crop-loss due to wet conditions there.
Market watchers say soybeans may have touched their near-term highs, which caused some petering out.
SOYOIL prices settled weaker on Wednesday, tracking losses in Malaysian palm oil.
SOYMEAL closed stronger on Wednesday.
CORN futures closed one to four cents per bushel lower on Wednesday as concerns eased about Brazil’s crop.
Market watchers say Brazil has gotten rain, which will support pollinating crops, and is bearish.
Spill-over weakness from the nearby corn market added to the declines on Wednesday.
But Brazil is still expected to see crop-loss, and rain is slowing seeding in parts of the US, which limited losses.
WHEAT closed three to five cents per bushel weaker on Wednesday, as investor short-covering ran out.
Rains in the US further pressured the market.
Showers in the US Plains are beneficial for crop-development, which is bearish.
A strengthening US dollar added to the declines on Wednesday.
– Analysts say Russia is exporting wheat at record levels.
– Asia has its first outbreak of a fungal disease, which has hurt crops in South America, according to reports.
