By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 7 (MarketsFarm) – The ICE Futures canola market was stronger on Wednesday after trading to both sides of unchanged, with the largest gains in the nearby May contract as some speculative stops were hit on the way up.
Tuesday’s move above the 20-day moving average was bullish from a chart-standpoint, which encouraged more fund buying on Wednesday as the May contract touched its strongest levels in two weeks.
Tightening supplies and the need to ration demand also provided support, with dryness concerns across much of the Prairies ahead of spring seeding also supportive.
However, losses in Chicago Board of Trade soybeans and soyoil put some pressure on the Canadian oilseed.
About 22,313 canola contracts traded on Wednesday, which compares with Tuesday when 31,637 contracts changed hands. Spreading was a feature, accounting for 14,844 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade end weaker on Wednesday, retreating from earlier gains as sharp losses in soyoil weighed on values.
Monthly United States census data showed that 167.5 million bushels of soybeans were shipped out of the country in February. That marked the first month of the crop year-to-date that exports didn’t hit a new record, but they were still the largest for the month in five years.
The advancing Brazilian harvest and early expectations for larger South American crops next year also weighed on values.
The U.S. Department of Agriculture’s monthly supply/demand report will be released on Friday. While the report is unlikely to contain much market-moving news after the acreage data out last week, pre-report positioning was still a feature
CORN futures posted solid gains, taking some direction from wheat.
Weekly U.S. ethanol production came in at 975,000 barrels per day, which was up by 10,000 from the previous week. Stocks of the renewable fuel tightened to 20.6 million barrels, which marked their lowest level in nearly five months.
Slow seeding of Brazil’s second corn crop provided some support.
WHEAT futures were higher, with the biggest gains in Minneapolis spring wheat due to dryness concerns in the Northern Plains. Chart-based positioning after recent losses were also supportive.
However, rising production estimates out of Ukraine did put some pressure on values.