By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker on Wednesday, retreating from early gains as chart-based speculative buying gave way to increased farmer selling.
Early strength in Chicago soybeans and soyoil had provided support, but beans turned lower and soyoil moved off its session highs.
Widespread rains across the Prairies may delay seeding operations but were seen as beneficial for crops in the long run, with the improving moisture conditions weighing on prices.
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There were an estimated 43,267 contracts traded on Wednesday, which compares with Tuesday when 41,176 contracts traded. Spreading accounted for 22,350 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were initially supported by fund short covering on Wednesday, but prices turned lower after the release of bearish monthly crush data.
Oilseed processors in the United States crushed 166.03 million bushels of soybeans in April, according to a report from the National Oilseed Processors Association. That was down by 15 per cent from the previous month and well below average trade estimates of 183 million bushels. Soyoil stocks dipped 5.2 per cent, at 1.75 billion pounds.
The U.S. Department of Agriculture announced private export sales of 180,000 tonnes of soybeans to unknown destinations this morning.
CORN also backed away from overnight gains to settle with small losses.
Monthly ethanol data showed production of the renewable fuel in the U.S. increased to one million barrels per day in the past week, with stocks up by 289,000 barrels at about 24.5 million barrels.
Midwestern weather forecasts should allow for good seeding progress over the next week.
Weather concerns in Russia remained supportive for WHEAT, but selling came forward at the highs to weigh on values.
Russia’s SovEcon lowered their call on Russia’s wheat crop to only 85.7 million tonnes, which compares with an estimate only a few days ago of 89.6 million tonnes.
Early results of a crop tour of U.S. winter wheat growing regions pegged average hard red winter wheat yields in the country at 49.9 bushels per acre, well above the 29.8 bushels per acre expected at the same time a year ago.
