By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Oct. 27 (MarketsFarm) – The ICE Futures canola market was stronger on Wednesday, hitting fresh contract highs for the second-straight session as speculators continued to add to their long positions.
While tight supplies remained supportive, canola is already priced high enough to ration demand and a trader said there was no reason for the futures to keep moving higher from a fundamental standpoint.
Chicago soyoil futures were weaker on the day, which put some spillover pressure on canola. A firmer tone in the Canadian dollar also weighed on values, with the currency back above 81 U.S. cents.
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About 30,170 canola contracts traded on Wednesday, which compares with Tuesday when 29,642 contracts changed hands. Spreading accounted for 21,482 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade managed to hold onto small gains on Wednesday, finding spillover support from a rally in corn. Sharp losses in soyoil and outside energy markets had weighed on prices most of the session.
Seasonal harvest pressure tempered the eventual advances in soybeans, as producers continue to make good progress and yields have generally beat earlier expectations. A good start to seeding in Brazil was also bearish
Solid demand on the other side provided underlying support, although there was no fresh business announced on Wednesday.
CORN posted solid gains on the back of bullish ethanol news.
United States ethanol production averaged 1.106 million barrels per day in the latest weekly report, hitting the second-highest level on record, down by only 2,000 barrels from the record hit in December 2017.
However, even with the high production, stocks of the renewable fuel still tightened.
The good U.S. corn harvest pace did put some pressure on values.
WHEAT was higher across the board. Tight world supplies and good demand were supportive, with European wheat futures hitting their highest levels since 2008 overnight.
Egypt, the world’s largest wheat importer, bought 360,000 tonnes of wheat in its latest tender with Russia, Ukraine, and Romania the suppliers.
The U.S. winter wheat crop is reportedly in decent shape, keeping a lid on the upside
