The ICE Futures canola market was mixed on Wednesday, with losses in the front months and gains in the more deferred positions as the old/new crop spread narrowed in.
Strength in the Canadian dollar put some pressure on the canola market throughout the session, as the rising currency cuts into crush margins and makes exports less attractive to global buyers. Speculative profit-taking also weighed on values as prices backed away from nearby highs.
However, the underlying chart signals remain bullish, making any losses a buying opportunity from a technical standpoint. Gains in the Chicago Board of Trade soy complex also provided spillover support.
About 19,507 canola contracts traded on Wednesday, which compares with Tuesday when 13,776 contracts changed hands. Spreading accounted for 14,596 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade Soybeans were stronger on Wednesday, underpinned by weakness in the United States dollar and generally solid export demand. However, no fresh flash sales were announced this morning.
Gains in crude oil and general firmness in world vegetable oil markets added to the strength in soybeans.
Concerns over seeding delays in parts of the Midwest after recent precipitation also provided support.
However, forecasts calling for drier weather should allow producers to make some progress with spring seeding sooner rather than later.
CORN was back testing fresh highs after Tuesday’s modest correction, with the need to keep pace with soybeans in order to encourage acres this spring behind some of the buying interest.
Corn traders were also following the weather forecasts closely, as the cool and wet conditions so far this spring have caused seeding delays.
A downturn in wheat tempered the upside in corn.
WHEAT was mixed, with losses in the winter wheats and a steadier tone in Minneapolis spring wheat.
Ideas that Russian wheat was still making its way into the global market, despite strict sanctions, accounted for some of the weakness with reports that Russia was making sales at large discounts.
The losses came despite declining condition ratings for the U.S. winter wheat crop, with much of the crop still dealing with a lack of moisture.
