By Dave Sims, Commodity News Service Canada
Winnipeg, April 25 (CNS Canada) – The ICE Futures Canada canola market finished lower on Wednesday, tracking losses in U.S. soyoil and Malaysian palm oil.
Overhead resistance weighed on the market while traders continued to exit the May contract.
There are widespread expectations this Friday’s acreage estimates from Statistics Canada will forecast a record crop.
However, weakness in the Canadian dollar and gains in U.S. soybeans were supportive for canola.
There are ideas seeding could begin in significant parts of Western Canada next week, if the warm weather continues.
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Around 20,749 canola contracts were traded on Wednesday, which compares with Tuesday when around 18,907 contracts changed hands. Spreading accounted for 13,472 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished higher on Wednesday, as Argentina bought 130,000 tonnes of soybeans from the United States. The move underscores how serious the drought in Argentina has been this year.
Brazilian soybean prices are starting to move higher due to Chinese buying, which was good news for the U.S. exporters. While China is buying oilseeds from Canada and South America it hasn’t bought any U.S. soybeans for the past two weeks.
Ports in Brazil have been moving out product at a record pace.
Corn futures ended stronger as planting efforts in the U.S. Corn Belt remain bogged down.
Demand for livestock feed is extremely strong and ethanol is also being produced at a steady clip.
The July corn contract has moved above the 50-day moving average of C$3.90 per bushel.
Chicago wheat futures posted strong gains on Wednesday due to speculative buying.
There are reports of scattered frost damage to some hard red winter wheat crops, which was bullish.
The gains might have been higher but the most-active July contract ran into technical resistance at the US$5.00 per bushel level.
