By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, Dec. 30 – The ICE Futures Canada canola market finished lower in choppy trading Wednesday, as traders positioned themselves before New Year’s Day.
“It was volatile, we had two to three dollar moves,” said a Winnipeg-based trader. “It was about as volatile as I’ve seen in a while.”
Profit-taking and speculator selling undermined the market along with the Canadian dollar which was higher relative to its US counterpart.
Ideas that the market was overbought after yesterday’s gains also sparked some selling in the early-going.
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At one point, canola’s most-active March contract rose to US$494.40 per tonne, which was its highest point since mid-August, according to the trader.
“We’re on the verge of making highs here, going back to summer,” he added.
However, Chicago soybeans and soyoil were both higher which lent some support to the market.
Farmer selling was slower-than-normal as producers waited for the start of the new tax year.
Crushers were buying near the end of the session, which was supportive.
Milling wheat, durum and barley were all untraded and unchanged.
Around 18,289 canola contracts were traded on Wednesday, which compares with Tuesday when around 21,953 contracts changed hands. Spreading accounted for about 12,426 of the contracts traded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed three to five-and-a-half cents per bushel higher Wednesday as unfavourable weather in Brazil supported prices.
Weather in Brazil has been too dry, market watchers say, which has been putting some of the country’s crops at risk.
Some analysts say north-eastern Brazil has been too dry to see significant recovery in soil moisture.
However, forecasts for rain in that region limited gains.
SOYOIL prices settled higher on Wednesday.
SOYMEAL closed lower on Wednesday, pressured by nearby grain markets.
CORN futures closed three to four cents per bushel weaker on Wednesday as expectations that Argentina’s farmers would soon be exporting corn pressured prices.
The news is especially bearish as it adds to global stocks, and Argentina’s producers are able to offer lower prices.
A stronger US dollar further added to the bearish tone.
WHEAT closed five-and-a-half to six cents per bushel lower on Wednesday, pressured by a firm US dollar and the expectation of increased sales from Argentina.
Weak export demand further pressured prices on Wednesday.
However, standing water in the US Midwest limited losses, as damp conditions have the potential to damage winter wheat crops.
– Due to reduced seeding and growing complications, India is expected to have a smaller wheat crop than last year.
– Egyptian officials say they want to produce 80 per cent of wheat domestically by 2018, according to reports.
