North American Grain/Oilseed Review: Canola follows soyoil lower

The ICE Futures canola market was weaker on Wednesday, taking some direction from Chicago Board of Trade soyoil.

Malaysian palm oil futures were also lower, but European rapeseed was higher on the day.

Chart-based speculative selling contributed to the losses in canola, as investors holding large long positions booked some profits, according to participants.

However, the underlying fundamentals of tight supplies remained supportive, with the general technical trend also still pointing higher for canola

About 27,642 canola contracts traded on Wednesday, which compares with Tuesday when 16,675 contracts changed hands. Spreading accounted for 19,588 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday, as traders adjusted positions ahead of the United States Department of Agriculture’s latest supply/demand estimates, due out on Thursday.

The gains came despite sharp declines in soyoil, with soymeal higher on the day as the product spreads saw some adjustment.
General expectations ahead of tomorrow’s report are for increases in both U.S. and world soybean ending stocks, with adjustments to South American crop projections likely to be followed closely.

The USDA announced private export sales of 130,000 tonnes of soybeans to China this morning, providing some support for the futures.

CORN futures traded to both sides of unchanged throughout the session, but the bias was higher on the back of solid export demand.

The USDA announced private export sales to Mexico this morning of about 1.8 million tonnes, with a million of that to be delivered during the current marketing year and the remainder in 2022/23.

While yesterday’s move by the U.S. Environmental Protection Agency to lower renewable fuel blending standards remained bearish for corn, the government agency also announced plans to deny exemptions to numerous smaller refineries.

WHEAT was mostly lower, with the largest losses in the Chicago and Kansas City winter wheat contracts.

Forecasts calling for warm temperatures and good rains in some key U.S. winter wheat growing regions put pressure on values, as the moisture should aid crops as they head into dormancy.

Only minor revisions to the wheat balance sheets are anticipated in the Dec. 9 USDA report.

The Western Producer

Tags: soybean futures, corn futures, palm oil futures, soyoil, canola market, wheat futures, soymeal