By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Feb. 24 (CNS Canada) – ICE Futures Canada canola contracts were higher on Wednesday, as the market saw a correction after Tuesday’s sharp declines.
Oversold price sentiment and end user bargain hunting contributed to Wednesday’s gains, according to participants.
Concerns that tougher Chinese import standards may cut into the offshore demand going forward also kept some caution in the market, although traders were generally of the opinion that tighter dockage allowances from the major customer would not lead to significant adjustments to the export program.
Read Also
North American Grain/Oilseed Review: Canola rises, down day for grains
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Friday despite weakness in most comparable…
The Canadian dollar was stronger against its US counterpart on Wednesday, which limited the gains.
The nearby technical bias has also shifted to the downside, making any moves higher a good selling opportunity from a chart standpoint, according to analysts.
About 30,457 canola contracts were traded on Wednesday, which compares with Tuesday when 36,695 contracts changed hands. Spreading accounted for about 16,810 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed mixed, but mostly unchanged, on Wednesday, with far contracts supported by gains in crude oil before the market closed.
Soybeans are used in biodiesel production, and gains in crude oil prices increase the likelihood that processors will blend more than their mandated amounts of biofuel.
However, crude oil futures turned lower after the market closed, which could have a bearish effect on prices in coming sessions.
New crop soybeans from Argentina will be sold into the market soon, which pressured nearby contracts.
The United States Department of Agriculture is set to release its 2016 Annual Outlook Forum on Thursday.
SOYOIL prices settled stronger on Wednesday.
SOYMEAL closed mostly higher on Wednesday.
CORN futures closed about two cents per bushel weaker on Wednesday, as a lack of weather concerns and an upcoming South American harvest pushed prices lower.
Analysts say is corn facing a lack of demand, which is bearish.
WHEAT closed three to five cents per bushel lower on Wednesday, as US wheat is uncompetitive in global markets.
A strong US dollar has made the country’s wheat more expensive and therefore less appealing to foreign buyers.
High global supplies added to the bearish tone on Wednesday.
– Jordan wants 100,000 metric tonnes of hard milling wheat, analysts say.
– Russian government officials are still uncertain about whether or not to change the country’s export tax, market watchers say.
