By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 16 (MarketsFarm) – The ICE Futures canola market was weaker on Wednesday, retreating from earlier gains as losses in the Chicago soy complex spilled over to weigh on values.
Solid end user demand and a lack of significant farmer selling provided underlying support for canola to start the day, with a softer tone in the Canadian dollar also supportive.
However, the soybean and soyoil futures at the Chicago Board of Trade were sharply lower which eventually pulled the canola market lower as well. Malaysian palm oil was also lower on the day, while European rapeseed held onto small gains.
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About 39,520 canola contracts traded on Wednesday, which compares with Tuesday when 23,895 contracts changed hands. Spreading accounted for 28,100 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade dropped in sympathy with soyoil on Wednesday.
News Tuesday of a missile strike in Poland had sent grain markets climbing higher late in the day, but on further investigation the missile that left two people dead was deemed as unintentional and most likely tied to the Ukrainian anti-missile defence system rather than a planned attack by Russia.
Rising palm oil stocks and concerns over declining demand for vegetable oil out of China, as they deal with mounting COVID cases, contributed to the softness in the soy market.
Chart-based selling was also bearish, with some stops hit on the way down. However, easing harvest pressure was somewhat supportive.
Monthly United States crush data showed that 184.46 million bushels of soybeans were processed in the country in October, which was in line with expectations and well ahead of the 158.1 million bushels crushed the previous month. Soyoil stocks, at 1.528 billion pounds, were up on the month, but slightly behind average trade guesses.
CORN was also due for a correction after Tuesday’s bounce.
The U.S. Department of Agriculture reported large flash sales of nearly 1.9 million tonnes of corn to Mexico this morning, providing some support.
U.S. ethanol production dipped by 40,000 barrels per day in the latest weekly report, coming in at 1.011 million barrels per day. Stocks of the renewable fuel dipped by nearly 900,000 barrels at 21.298 million.
WHEAT was lower across the board, taking back Tuesday’s gains as tensions over the missile strike in Poland eased.
Ukrainian farmers are reportedly nearly finished seeding their next winter wheat crop, with conditions heading into the winter months generally said to be looking good.
The USDA reported flash sales of 150,000 tonnes of spring wheat to Iraq this morning, lending some support to the Minneapolis futures.
