By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 22 (MarketsFarm) – The ICE Futures canola market was mixed at Wednesday’s close, with the bias lower in the most-active months as early buying interest subsided.
While Chicago soyoil and Malaysian palm oil were higher, soybeans and meal were both lower which weighed on canola. European rapeseed futures were also down on the day.
Speculators were on both sides of the market, adjusting positions as early chart signals pointed higher before values ran into resistance.
About 32,929 canola contracts traded on Wednesday, which compares with Tuesday when 43,235 contracts changed hands. Spreading accounted for 19,410 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, amid ideas the market was due for a correction after Tuesday’s rally.
Increased farmer selling out of Brazil, as the Carnival holiday ends, was thought to be putting some pressure on values.
Expectations for a large Brazilian crop were also bearish as the harvest progresses, although the persistent production concerns out of Argentina remained a supportive influence.
Malaysia will keep an eight per cent export tax on palm oil through March, according to reports, which provided some support for world vegetable oil markets today.
The United States Department of Agriculture is holding its annual Agricultural Outlook Forum on Thursday and Friday, and traders will be watching for the first thoughts from the agency on new crop acres.
CORN was also said to be due for a correction after Tuesday’s gains, with chart-based selling weighing on values.
Brazil’s second corn crop was reportedly 40 per cent planted, according to reports from the country. That’s up from 24 per cent a week ago but still off the year-ago pace of 53 per cent done as excessive moisture causes delays.
WHEAT was lower in all three markets, as cheaper Russian wheat continues to undercut other countries in global tenders.
However, the ongoing conflict in Ukraine remained a supportive feature in the background with traders uncertain over grain movement from the region.
Forecasts calling for much needed precipitation across parts of the dry Eastern Corn Belt put pressured values as well, as winter storm tracks across much of the country.
