By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 9 (MarketsFarm) – The ICE Futures canola market was weaker on Wednesday, as speculative positioning and relatively favourable Prairie weather conditions weighed on values.
Canola was also still rebalancing itself relative to the Chicago soy complex, which moved lower on Monday when Canadian markets were closed for a holiday.
However, soybeans and soyoil were both firmer on Wednesday, providing some underling support for canola.
Ideas that canola is looking cheap compared to other oilseeds also helped temper the declines.
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About 25,282 canola contracts traded on Wednesday, which compares with Tuesday when 32,573 contracts changed hands. Spreading accounted for 12,790 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, underpinned by solid export demand and positioning ahead of Friday’s supply/demand estimates from the United States Department of Agriculture.
Average trade guesses ahead of Friday’s report call for a slight cut to U.S. soybean production from earlier forecasts, with yield estimates ranging from about 50.5 to 52 bushels per acre.
The USDA announced flash export sales of 251,000 tonnes of soybeans to China this morning.
Relatively favourable Midwestern crop conditions kept some pressure on the bean market, with “not much negative on the weather side,” according to an analyst.
CORN was pressured by the favourable weather, posting small losses.
U.S. corn production is also expected to be revised lower in Friday’s report, with yield estimates ranging anywhere from 172.4 to 178 bushels per acre.
Weekly ethanol production in the U.S. came in at 1.023 million barrels per day, down by 44,000 barrels from the previous week and the lowest level in two months. However, stocks of the renewable fuel still edged up slightly, to 22.88 million barrels.
WHEAT was lower across the board, with average trade guesses calling for an increase in U.S. wheat production in Friday’s report as upward revisions in the winter wheats are expected to counter downward revisions in spring wheat.
Rising production estimates out of Russia were also bearish, although quality issues with Ukraine’s crop along with the ongoing difficulties in moving grain from the region, remained supportive.
