By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Feb. 22 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Wednesday, as concerns over tightening supplies provided support.
Weakness in the Canadian dollar and advances in Chicago Board of Trade soyoil added to the firmer tone in canola, according to participants, as crush margins held steady on the day.
However, CBOT soybeans were lower, as the large South American crop prospects and expectations for increased US soybean acres weighed on prices.
Intermonth spreading was a feature of the trade, accounting for much of the activity as participants continue to exit the front month.
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About 24,419 canola contracts were traded on Wednesday, which compares with Tuesday when 24,833 contracts changed hands. Spreading accounted for 14,780 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were down by one to four cents per bushel on Wednesday, as bearish technical signals kept the path of least resistance pointed lower.
Ideas US farmers will plant more acres to soybeans than corn this spring, for the first time in more than thirty years, added to the softer tone.
Large South American crop prospects remained a bearish influence in the soy market as well. However, traders are keeping an eye on conditions in Argentina, where heavy rains are starting to cause concerns in some areas.
SOYOIL futures settled with small gains on Wednesday.
SOYMEAL futures were down on Wednesday, with adjustments to the soyoil/soymeal spreads behind some of the activity.
CORN futures in Chicago were up by one to two cents per bushel, amid expectations for smaller US corn seedings this spring.
The USDA is holding its annual outlook forum this week, and is expected to be releasing the first official acreage estimates for the upcoming growing season.
A renewed sense of optimism from the ethanol sector provided further support, as US President Donald Trump sent a letter to the country’s Renewable Fuels Association in support of the industry.
However, news of a 136,000 tonne cancellation of corn previously sold to South Korea did put some pressure on values.
WHEAT futures in Chicago were up by four to six cents per bushel on Wednesday.
End user bargain hunting was somewhat supportive, as wheat recovered from recent losses.
Improving global demand for wheat added to the firmer tone, although the US missed out on the latest business to Egypt once again.
