By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Aug. 14 (MarketsFarm) – The ICE Futures canola market ended mixed on Wednesday, with gains in the most active front months and losses in the more deferred positions.
Oversold price sentiment and improving crush margins accounted for some buying interest from domestic processors, according to a trader.
Weakness in the Canadian dollar, which was down by roughly half a cent relative to its United States counterpart, was also supportive.
However, losses in Chicago Board of Trade soybeans and improving crop prospects in parts of Western Canada put some pressure on values.
In other news, Germany’s rapeseed crop was pegged at only 3.8 million tonnes in a report out of the country. That would be down by about 24 per cent from 2018 and mark the smallest crop in 22 years.
About 16,625 canola contracts traded on Wednesday, which compares with Tuesday when 18,886 contracts changed hands. Spreading accounted for 9,626 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Wednesday, retreating from Tuesday’s gains.
Ongoing uncertainty over trade with China weighed on values, as recent optimism failed to be followed up by any concrete developments once again.
Weakness in Argentina’s peso, which has dropped sharply relative to the United States dollar over the past week, added to the softer tone. The weaker peso makes Argentine soybeans more attractive on the international market.
CORN continued its downward trend, hitting fresh four month lows as the market continued to react to Monday’s bearish production estimate from the U.S. Department of Agriculture.
While the USDA forecast average corn yields at the surprisingly high level of 169.5 bushels per acre, many analysts remain of the opinion that actual yields may underperform especially as development runs behind normal across much of the Midwest.
Weekly U.S. ethanol production hit 1.045 million barrels per day in the latest report, which was up by 5,000 barrels from the previous week. Supplies of the renewable fuel jumped sharply, as production surpassed demand.
WHEAT futures were firmer on Wednesday, finding some support after recent losses. Speculative positioning was a feature.