THE ICE Futures Canada canola market finished mixed on volatile trading Wednesday – as strength in the Canadian dollar weighed down nearby positions.
Traders took profits off the highs while some investors also exited front-month positions in favour of the more-deferred contracts.
US soybeans and soyoil, Malaysian palm oil and European rapeseed futures were all firmer which helped to underpin the market while slow farmer selling was also supportive.
However, the Canadian dollar was sharply stronger relative to its US counterpart which was bearish for canola as it made it less attractive to international buyers.
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“The Canadian dollar limited canola’s ability to participate,” a trader said.
The ongoing soybean harvest in South America and expectations of a massive US crop, also pressured prices.
Around 37,644 canola contracts were traded on Wednesday, which
compares with Tuesday when around 15,448 contracts changed hands. Spreading accounted for 27,420 of the contracts traded.
Milling wheat, barley and durum were all untraded.
CORN futures in Chicago finished slightly stronger on short-covering Wednesday as more rain fell in the US Midwest. The slow-pace of planting has put a weather
premium into the market, which was supportive.
In the Mississippi Delta many areas are too wet to plant but when farmers are able to, many will likely swap out corn acres in favour of soybeans and other crops, according to different reports.
China continues to buy corn from Ukraine and Argentina, said an analyst.
SOYBEAN futures in Chicago ended three to four cents per bushel higher on speculative trading as some investors went bargain-hunting in the early-going part of the session.
Soybeans were due for a correction after heavy selling earlier this week, said a trader.
There are ideas that China may decide to bid for some more soybeans in the months to come. Right now the Asian giant has fixed its gaze on South America but North American exporters are hoping that will change soon.
SOYOIL futures in Chicago closed higher on the day.
SOYMEAL futures ended lower, with spreading against soyoil a feature.
WHEAT futures in Chicago fell six to seven cents per bushel Wednesday as continued rain in the US southern plains is expected to aid development of the crop.
Russia will decide whether or not to impose a wheat export tax in May, according to a report.
Farmers in Ukraine have reportedly planted about 80 percent
of their spring wheat.
– G3 Global Grain Group will acquire a majority 50.1%
interest in the former Canadian Wheat Board for C$250
million. G3 is a newly created joint venture between Bunge
Limited and SALIC Canada Limited, which itself is a wholly
owned subsidiary of Saudi Arabia’s Saudi Agricultural and
Livestock Investment Company.
