By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 22 (MarketsFarm) – The ICE Futures canola market was weaker on Wednesday, retreating from its one-month highs to settle just below the 50-day moving average in the January contract.
Chart-based positioning was a feature, with the failure to hold above that key technical level seen as bearish from a chart standpoint.
Losses in Chicago soybeans and soyoil accounted for spillover weakness in the Canadian oilseed. Markets in the United States will be closed Thursday for Thanksgiving and will trade reduced hours on Friday, while the canola market will trade as normal. Positioning ahead of the U.S. holiday was a feature.
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There were an estimated 37,167 contracts traded on Wednesday, which compares with Tuesday when 43,397 contracts traded. Spreading accounted for 25,746 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade fell sharply lower on Wednesday, as losses in crude oil spilled over to weigh on world vegetable oil markets.
Positioning ahead of the United States Thanksgiving holiday was a feature, with markets closed Thursday and only open for reduced hours on Friday.
Forecasts calling for much-needed moisture in dry northern growing regions of Brazil contributed to the declines, although southern parts of the country remain too wet.
Most analysts continue to call for record soybean production out of Brazil this year, despite issues with seeding, with China also showing a preference for Brazilian beans in its latest export purchases.
CORN futures held near unchanged for most of the session, posting small losses at the final bell.
The U.S. Department of Agriculture announced private export sales of 128,000 tonnes of corn to unknown destinations this morning. Weekly sales data will be delayed until Friday.
U.S. ethanol production dipped to 1.023 million barrels per day in the latest report, down by 24,000 barrels per week. Stocks of the renewable fuel were up sharply though, rising by 698,000 barrels, to 21.652 million barrels which was the highest level in over a month.
WHEAT was mixed, with gains in Chicago soft wheat, but losses in the Kansas City and Minneapolis hard red wheat contracts.
The USDA announced private export sales of 110,000 tonnes of soft red wheat to China this morning, providing some support.
