By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 19 (MarketsFarm) – The ICE Futures canola market was weaker at Wednesday’s close, retreating from earlier gains in choppy activity.
Losses in Chicago soyoil and European rapeseed futures accounted for some of the spillover selling pressure in canola, with chart-based positioning adding to the eventual declines.
The new crop contracts lagged to the downside, with concerns over spring seeding delays providing some support as Prairie temperatures remain cold and a storm brought snow to parts of Saskatchewan and Manitoba.
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About 45,808 canola contracts traded on Wednesday, which compares with Tuesday when 39,311 contracts changed hands. Spreading accounted for 35,800 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted double-digit losses on Wednesday, with bearish technical signals behind some of the selling pressure.
While production estimates out of Argentina continue to be revised lower, Brazil grew a large crop and supplies from the country are starting to enter the world export market.
Relatively favourable United States planting conditions also weighed on values, although delays are expected in some areas.
CORN was thought to be due for a correction from a chart standpoint, moving lower after testing its 50-day moving average yesterday.
Weekly U.S. ethanol production climbed to just over one million barrels per day in the latest report, from 959,000 the previous week.
Seeding progress was being followed closely across the U.S.
WHEAT was lower across the board, with forecasts calling for much needed rains in dry areas of the U.S. Plains behind much of the selling pressure.
News that grain vessels leaving Ukraine were once again being inspected was behind some of the selling pressure, as the resumption of inspections was seen as reinforcing ideas that the Black Sea grain movement deal would be extended.
Poland also reached an agreement which will allow Ukrainian grain to move through the country once again, after imposing a ban over the weekend.
