By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 25 (MarketsFarm) – The ICE Futures canola market was stronger on Wednesday, seeing a short-covering correction after dropping lower the previous five sessions.
In addition to the speculative buying interest, canola was also underpinned by solid export demand as crush margins remain wide.
Gains in Chicago soybeans were also supportive, although soyoil posted losses. European rapeseed and Malaysian palm oil futures were also down on the day.
About 35,481 canola contracts traded on Wednesday, which compares with Tuesday when 34,963 contracts changed hands. Spreading accounted for 22,570 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade managed to move higher on Wednesday, with chart-based positioning a feature as the market recovered after testing key support levels to the downside.
While recent rains in Argentina helped ease dryness concerns there to some extent, coverage was varied with more moisture needed through the growing season.
The United States Department of Agriculture announced private export sales of 130,000 tonnes of soybeans to unknown destinations this morning.
CORN was also supported by flash export sales, but was unable to hold onto gains and settled with small losses.
The USDA announced private export sales of 100,000 tonnes of corn to unknown destinations this morning.
Farmers in Brazil are just getting started seeding their next corn crop, with one per cent of intended acres in the ground, according to reports.
The latest ethanol data showed 1.012 million barrels of the renewable fuel were being produced per day in the U.S. during the past week, marking a 4,000 barrel per day increase from the previous week. Stocks were also up slightly, at 25.077 million barrels.
WHEAT was higher across the board, seeing a continuation of yesterday’s gains.
Recent snow in Kansas helped ease dryness concerns in the key wheat growing state with more moisture in the forecasts for the next week. However, cold temperatures are also expected, which could raise some winterkill concerns.
