WINNIPEG, Oct. 4 (MarketsFarm) – The ICE Futures canola market moved lower on Wednesday, as losses in crude oil and world vegetable oil markets, including Chicago soyoil, weighed on values.
Speculative selling contributed to the declines, although the November contract managed to hold above the psychological C$710 per tonne level.
Seasonal harvest pressure was another bearish influence, according to participants. However, farmer selling was thought to be subsiding with operations in their final stages across most of the Prairies.
Weakness in the Canadian dollar and wide crush margins provided support.
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There were an estimated 37,023 contracts traded on Wednesday, which compares with Tuesday when 70,171 contracts traded. Spreading accounted for 26,132 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade held within a few cents of unchanged on Wednesday, lacking any clear direction.
Sharp losses in crude oil, which was down by more than US$4 per barrel due to mounting concerns over global demand, spilled into world vegetable oil markets with the resulting declines in soyoil weighing on soybeans as well.
In addition, solid export movement out of Brazil was likely limiting some business out of the United States.
However, soybeans themselves uncovered some chart support, holding rangebound overall.
The advancing U.S. soybean harvest is about a quarter complete. While rains in the nearby forecasts may cause delays in some areas, the longer-range outlooks should allow for some good progress.
CORN futures posted small losses, seeing some consolidation ahead of next week’s monthly U.S. Department of Agriculture supply/demand report.
The USDA announced private export sales of nearly 200,000 tonnes of corn to Mexico Wednesday morning, providing some support.
U.S. ethanol production held steady at just over a million barrels per day in the latest weekly report, with stocks of the renewable fuel tightening slightly to 21.884 million barrels.
WHEAT took back some of its gains from earlier in the week but held above the contract lows hit in late-September.
The recent weakness in U.S wheat was thought to be making exports more attractive in the global market, although there was no fresh business announced today.
Competition from the Black Sea region also remains stiff, with cargoes continuing to leave Ukraine.
