By Terryn Shiells, Commodity News Service Canada
WINNIPEG, May 6 – The ICE Futures Canada canola market ended lower on Wednesday, following the declines seen in Chicago soyoil futures, analysts said.
Sentiment that recent advances were overdone added to the bearish tone, as did generally good weather for seeding in North America this spring.
Further downward pressure came from the strong Canadian dollar, as it made canola less attractive to crushers and exporters.
However, strength in Malaysian palm oil and European rapeseed futures helped to limit the declines.
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Concerns about tight supplies of canola in Canada, as March 31 stocks were smaller than expected in Statistics Canada’s report, were also supportive.
About 15,387 contracts traded on Wednesday, which compares with Tuesday when 17,162 contracts changed hands.
Milling wheat, durum and barley futures were all untraded. Though, the Exchange moved wheat prices higher after Wednesday’s close.
CORN futures on the Chicago Board of Trade recorded gains of three to five cents per bushel Wednesday as the price of oil rose and made corn-based ethanol more attractive.
The US government is currently pondering changes to blending requirements throughout the country which has raised expectations ethanol could see a rise in demand.
Some traders went bargain-hunting early in the session as well, according to an analyst.
Weakness in the US dollar also made corn more attractive to outside buyers.
SOYBEANS ended mixed as traders took profits off the highs shortly before the close. Values were two cents US per bushel lower, to two cents higher.
The more-deferred contracts ended higher on concerns that a strike by workers at Argentina crushing plants could disrupt supplies.
Signs are emerging of Chinese export demand for US soybeans, according to a report.
Still, large global supplies and the ongoing harvest in South America pressured prices.
SOYOIL futures in Chicago ended 13 points lower on the day.
SOYMEAL futures ended slightly below unchanged.
WHEAT futures in Chicago ended 11 to 13 cents US per bushel higher on word that participants of a Kansas-based crop tour found below-average yields.
A weaker US dollar also helped to underpin the market, as it made US wheat less expensive to international buyers.
However, scattered thunder-showers are expected to arrive soon in the US Southern Plains which will maintain favourable conditions for jointing to winter wheat, according to a report.
• A new report says total grain exports from Ukraine, Russia and Kazakhstan in the season 2015/16 will total 64 million tonnes, which is 6 million tonnes less than in the current season.
• Kazakhstan is expected to make further cuts to its forecast for grain exports in the current marketing year due to bad weather that severely damaged the quality of the harvest.
• South Africa may import another 485,000 metric tons of wheat by the end of this season that runs through September, a participant said.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
