By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Mar 22 – The ICE Futures Canada canola market ended mixed on Wednesday, with losses in the nearby contracts and gains in the more deferred values, as traders adjusted old crop/new crop positions.
Losses in US soybeans weighed on canola.
Favorable weather conditions for the large soybean crop in South America dragged on prices.
However, slow farmer selling provided some support along with gains in soyoil and Malaysian palm oil.
Flooding potential in southern Manitoba and southeastern Saskatchewan was throwing some uncertainty into the market.
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Canola is likely to stay choppy until the release of the USDA planting intentions report on Friday, March 31.
Around 28,480 canola contracts were traded on Wednesday, which
compares with Tuesday when around 17,313 contracts changed hands. Spreading accounted for about 18,220 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were narrowly mixed on Wednesday, with losses in the most active front months but a firmer tone in the more deferred positions.
The large South American crops accounted for much of the selling pressure, as Brazilian supplies start to become available on the global market.
Chart-based selling was another feature, as the May contract dipped below the US$10.00 per bushel mark.
The USDA releases its updated acreage and stocks estimates on Friday, March 31, and traders are said to be positioning themselves ahead of the data.
SOYOIL futures were higher on Wednesday, as adjustments to the oil/meal spreads continued to favour the oil side of the equation.
SOYMEAL futures were lower on Wednesday.
CORN futures in Chicago were down by one to two cents per bushel on Wednesday, as large South American crops continued to weigh on values.
Reports of softer fertilizer demand were somewhat bearish for corn as well, as lower fertilizer inputs could cut into yields.
Losses in wheat put spillover pressure on corn as well, according to participants.
Solid export demand on the other side remained somewhat supportive.
WHEAT futures in Chicago were down by three to five cents per bushel, as the widespread rains forecast across most of the dry US Plains continued to weigh on values.
Large world wheat supplies and bearish technical signals contributed to the softer tone.
However, the smaller US acreage base this year provided some underlying support.
