By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 25 (MarketsFarm) – The ICE Futures canola market was weaker on Wednesday, taking back most of its recent gains as losses in world edible oil markets weighed on values.
European rapeseed and Chicago soyoil futures were weaker on the day, with concerns over reduced Chinese demand for vegetable oil due to COVID-19 lockdown measures in the country behind some of the selling pressure.
Chart signals contributed to the losses, with the nearby July contract dipping below the 20-day moving average. However, support came in at the 100-day moving average, keeping the market within its well-established trading range.
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Ongoing concerns over seeding delays across parts of the Canadian Prairies helped temper the declines, with dryness issues in other regions also supportive.
About 14,753 canola contracts traded on Wednesday, which compares with Tuesday when 13,653 contracts changed hands. Spreading accounted for 6,812 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, as the possibility of reduced Chinese demand for vegetable oil weighed on values.
While soybean seeding seeding continues to run behind normal in the United States, farmers have been making progress and expectations for a big crop contributed to the declines.
Solid export demand remained supportive, although no fresh business was announced on Wednesday.
CORN was mixed at the final bell, seeing some consolidation after Tuesday’s larger losses.
China and Brazil have signed an agreement allowing Chinese imports of Brazilian corn, which may cut into the demand from the country for U.S. origin supplies.
However, dryness in Brazil provided some support, with the country’s second corn crop likely seeing some yield damage from the lack of moisture.
WHEAT ended mixed, with gains in Minneapolis spring wheat and losses in the winter wheats.
Talk that Russia may allow a humanitarian corridor in the Black Sea for Ukrainian vessels carrying grain for export put some pressure on the wheat market.
However, ongoing concerns over the state of the U.S. winter wheat crop in the Southern Plains and persistent seeding delays for spring wheat in the north helped temper the declines.
