By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, November 2 (CNS Canada) – ICE Futures Canada canola ended higher on Wednesday, gaining back some ground after Tuesday’s losses.
Investors pushed the market higher in corrective trade on Wednesday, but analysts say the technical bias is still likely to the downside.
Gains in Chicago Board of Trade soy oil and overnight advances in Malaysian palm oil added to the upside.
However, ideas that harvest weather may improve in Western Canada in coming weeks limited the upside.
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About 21,876 canola contracts traded on Wednesday, which compares with Tuesday when 30,333 contracts changed hands. Spreading accounted for about 7,112 of the contracts traded.
Milling wheat and durum were revised after the close, while barley was untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade were down by three to seven cents per bushel on Wednesday, as the large US crop prospects continued to weigh on prices.
The USDA releases its latest production estimates on November 9, and pre-report estimates are generally anticipating an upward revision to the already record-large soybean crop.
Relatively favourable South American conditions added to the bearish tone in soybeans. Losses in crude oil and the general selloff in the world financial markets also weighed on the grain markets.
Solid export demand on the other side provided support, helping limit the losses.
SOYOIL futures were up on Wednesday, with adjustments to the soyoil/soymeal spread behind some of the strength.
SOYMEAL futures were down on Wednesday.
CORN futures in Chicago were down by one to three cents per bushel on Wednesday, seeing some follow-through selling after Tuesday’s declines.
Good US harvest weather and large production prospects were also bearish for corn.
Sharp declines in crude oil, due to increasing US inventories, also weighed on corn given the grain’s connection to ethanol production.
WHEAT futures in Chicago were up by one to three cents per bushel on Wednesday, with production issues in other wheat growing regions of the world providing some support.
Recent frost in Australia cut into that country’s production prospects, which provided some support. Declining crop estimates out of India were also somewhat supportive.
However, US wheat continues to lack significant demand on the world export market.
