By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 15 (MarketsFarm) – The ICE Futures canola market settled lower for the ninth-straight session, as bearish technical signals and losses in outside markets weighed on values. Global economic concerns, highlighted by heavy losses in crude oil and sharp declines in shares of European bank Credit Suisse weighed heavily on values.
European rapeseed and Malaysian palm oil futures were also lower, while Chicago soyoil managed to claw its way above unchanged in the most active months by the close.
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Oversold price sentiment provided some support, with weakness in the Canadian dollar also helping temper the declines in canola.
About 41,911 canola contracts traded on Wednesday, which compares with Tuesday when 34,452 contracts changed hands. Spreading accounted for 26,266 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade dropped in sympathy with crude oil and other outside markets on Wednesday.
Crude oil was down by over four dollars per barrel at one point during the day, hitting its lowest level since December 2021 with that weakness weighing heavily on world vegetable oil markets as well.
Monthly United States crush data was also a bit softer than expected, although the 165.4 million bushels crushed in the country in February were still up slightly from the same month a year ago.
The ongoing dryness concerns in Argentina remain a supportive influence, as forecasters continue to lower their production estimates for the country.
CORN was underpinned by solid exports, with the front months rising to their best levels in a week.
The U.S. Department of Agriculture announced flash sales this morning of 667,000 tonnes of corn to China, with more business expected to show up in the days ahead.
Weekly ethanol data showed a slight 4,000 barrel per day increase in production of the renewable fuel in the U.S., coming in at 1.014 million barrels per day. Stocks were up by about a million barrels, at 26.4 million.
WHEAT saw some follow through buying after Tuesday’s gains, despite the widespread losses elsewhere.
Renewed tensions in Ukraine after a Russian fighter jet took out an American drone underpinned wheat, as traders wait to see what will come of negotiations to keep Ukrainian wheat flowing through the Black Sea.
Cold temperatures and a lack of significant rainfall across the southern U.S. Plains helped keep a bit of a weather premium in wheat as well.
