Winnipeg, (MarketsFarm) – The ICE Futures canola market was stronger on Wednesday, as fund short-covering and a lack of farmer selling on the other side provided support.
Gains in Chicago Board of Trade soyoil and weakness in the Canadian dollar added to the stronger tone. The Canadian dollar was down by roughly half of a cent relative to its United States counterpart, which supports crush margins and makes canola more attractive to international buyers.
About 32,730 canola contracts traded on Wednesday, which compares with Tuesday when 28,504 contracts changed hands. Spreading accounted for 24,152 of the contracts traded.
SOYBEAN futures at the Chicago Board of trade were weaker on Wednesday, as traders took profits on the sharp gains posted earlier in the week. Rising production estimates out of Brazil were also bearish.
The losses in soybeans came despite solid export demand, with the United States Department of Agriculture reporting private sales of 464,000 tonnes to China this morning.
A solid U.S. crush pace also tempered the declines. The monthly Fats and Oils report from the USDA’s National Agriculture Statistics Service showed that 177.5 million bushels of soybeans were crushed in August.
CORN was also pressured lower with profit taking after recent gains. Larger losses in wheat also weighed on values.
Slow harvest progress across the Midwest provided some support, as wet weather continued to cause delays.
WHEAT futures were weaker on Wednesday, as U.S. wheat remains expensive on the global export market and recent gains were seen as overdone.
Minneapolis spring wheat lagged the other wheats to the downside, as persistent weather delays in Canada and the northern U.S. raise concerns over the quality of the North American spring wheat crop.