By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 23 (MarketsFarm) – The ICE Futures canola market continued its downward slide on Wednesday, as bearish technical signals weighed on values.
Losses in crude oil added to the weakness in canola, with sharp declines in European rapeseed futures also weighing on prices. However, Chicago soyoil turned higher after early declines and provided some support.
Canola is looking oversold from a chart standpoint, with historically wide crush margins helping limit the losses.
Positioning ahead of the Thanksgiving holiday in the United States kept some caution in the market. U.S. markets will be closed Thursday and only open for reduced hours on Friday, while the canola market will trade its usual hours.
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About 28,756 canola contracts traded on Wednesday, which compares with Tuesday when 28,409 contracts changed hands. Spreading accounted for 19,230 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, recovering from earlier declines as traders adjusted positions ahead of the Thanksgiving holiday and solid export demand provided some support.
The U.S. Department of Agriculture reported flash export sales this morning of 110,000 tonnes of soybeans to China for delivery during the current marketing year.
Nearby weather conditions look relatively favourable for soybean crops in Brazil, although the forecasts have turned hotter and drier once again for Argentina.
News that Brazil was planning on upping its biodiesel blend requirements in April were supportive for prices as such a move would limit exportable supplies.
CORN was higher, although activity was thin and choppy.
Mexico is reportedly considering relaxing its restrictions on genetically modified corn.
Ongoing protests in Brazil following their recent presidential election continue to slow movement of grain from the countryside to export positions at the coast.
WHEAT was higher, recovering from earlier declines with tight nearby supplies behind some of the buying interest.
At least 100 vessels are reportedly waiting in Istanbul to move through the Black Sea.
