By Dave Sims, Commodity News Service Canada
Winnipeg, April 11 (CNS Canada) – The ICE Futures Canada canola market drifted lower on Wednesday, dragged down by losses in vegetable oil and some technical selling.
Recent strength in the Canadian dollar also weighed on values as it made canola less enticing to international buyers.
The dominant July contract fell below the C$530 per tonne mark.
There are ideas the market is overbought, which undermined prices.
However, cold weather in Western Canada has sparked ideas that acres, intended for canola, could be switched to other crops.
Read Also
Canadian Financial Close: Loonie returns above 72 U.S. cents
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar on Friday finally turned around to close higher,…
Yesterday’s USDA report, which projected slightly lower ending stocks of US soybeans, was supportive.
Around 26,329 canola contracts were traded on Wednesday, which compares with Tuesday when around 25,548 contracts changed hands. Spreading accounted for 20,106 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market ticked lower on Wednesday in technical selling.
The effects of yesterday’s USDA supply and demand report appear to have dissipated from the charts. The market was initially bolstered by declines in the U.S. carryout but forecasts calling for a record-large crop in Brazil seem to have offset that.
Two crushing plants in Argentina that had been on strike are reportedly up and running again.
Corn ended a few cents weaker on Wednesday.
Trading was choppy as investors waited for fresh news. Many analysts expect acreage in the U.S. will decline this year due to the late spring.
China will auction off seven million tonnes of four-year old corn starting April 19.
Chicago wheat futures in Chicago ended lower as the market continued to react to yesterday’s stocks report.
Ending stocks in the U.S. were raised in the USDA report to 1.06 billion bushels. That was higher than the average estimate, heading into the report, of 1.04 billion bushels.
The agency pegged global wheat inventories at 271.2 million tonnes, which was much higher than last year’s figure of 254.6 million.
