By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
Winnipeg, May 31 (CNS Canada) – ICE Futures Canada canola contracts closed mixed on Wednesday, although the most active contracts were all lower.
After values fell sharply earlier in the week the bearish chart signals had speculators on the sell-side once again, according to participants. A slowdown in end-user demand added to the softer tone, as buyers are thought to be covered for the time being.
However, the tightening old crop supply situation and persistent seeding delays in parts of Western Canada remained supportive.
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Weakness in the Canadian dollar, which traded below 74 US cents, helped limit the losses as well.
The Chicago Board of Trade soy complex was mixed, providing little direction for canola.
About 23,950 canola contracts traded on Wednesday, which compares with Tuesday when 26,313 contracts changed hands. Spreading accounted for 12,772 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although wheat prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade finished mixed on Wednesday. Some funds went bargain hunting today in the wake of yesterday’s losses which helped prop up near-term contracts. The more deferred values were pressured as more farmers switched out soggy corn acres in favour of soybeans.
However, commercial buying appears to be waning as the July-to-August futures spread continues to strengthen, a report said.
67 per cent of the US crop was seeded which compares with the five-year average of 86 per cent.
SOYOIL futures dropped six to eight points on Wednesday.
SOYMEAL futures finished slightly higher on Wednesday, with spreading against soyoil a feature.
CORN futures in Chicago finished four to five cents per bushel higher on Wednesday as values corrected themselves in the wake of Tuesday’s losses.
Crop condition ratings from the USDA were much worse than expected. The USDA said 28 per cent of the corn was in fair condition and another 7 percent was poor. Corn quality in Illinois and Idaho is especially poor, which was bullish for prices.
However, China is reportedly preparing to auction off six million tonnes of corn from its state reserve, which was bearish.
WHEAT futures in Chicago finished relatively unchanged on Wednesday.
US spring wheat planting is estimated to be 99 per cent complete, compared to the five-year average of 91 per cent.
Egypt has said its wheat stocks should be sufficient for the next five months.
