By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, January 25 (CNS Canada) – ICE Futures Canada canola closed weaker on Wednesday, feeling pressure from advances in the Canadian dollar and losses in US soy oil.
The Canadian dollar gained about half a cent against its US counterpart by close on Wednesday, which is bearish.
Losses in Chicago Board of Trade soy oil, due to favourable South American weather, added to the downside.
But despite the pressure, canola was able to hold up relatively well, which may be the result of fund-buying, traders say.
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About 14,504 canola contracts traded on Wednesday, which compares with Tuesday when 23,730 contracts changed hands.
Spreading accounted for about 11,580 of the contracts traded.
Durum and barley futures were untraded and unchanged, while milling wheat was revised lower after the close.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade dropped two to three cents per bushel on Wednesday, on reports of good crop conditions in Argentina, despite the country’s recent wet weather.
Commercials continue to sell at a steady pace, according to a report.
The harvest in Brazil is estimated to be three per cent complete, compared to last week’s estimate of one and a half per cent. In the Mato Grosso region, yields are bigger than expected so far, which was bearish for prices.
SOYOIL futures fell lower on Wednesday alongside slumping Malaysian palm oil futures.
SOYMEAL futures ticked higher.
CORN futures in Chicago finished three cents per bushel higher on Wednesday on signs of good demand for US supplies.
South Africa has accepted a 1.3 million tonne shipment of GMO corn from the US.
Corn’s move higher could be showing signs of petering out as more spec longs cash out, according to an analyst.
WHEAT futures in Chicago finished two cents per bushel weaker on Wednesday, due to lukewarm demand for US supplies amid large global inventories.
The front-month March contract tested support at the US$4.23 level.
On the other side, Russian wheat is getting more expensive due to the strengthening ruble, which was good news for US exporters.
