By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 17 (CNS Canada) – ICE Futures Canada canola closed mixed on Wednesday.
Deferred canola contracts lost ground at the close, after advances earlier in the day. Market watchers say profit-taking may have contributed to that downside.
Some stock markets notched fresh lows throughout the day, which added uncertainty to commodity markets, pressuring values.
S&P 500 and Dow markets declined following a leaked memo from former FBI chief James Comey, which indicates US President Donald Trump may have tried to interfere with a federal investigation.
That uncertainty added a bearish element to canola.
However, the front July contract advanced, as cold and wet conditions in Western Canada are slowing seeding and harvesting progress.
Around 16,605 canola contracts traded on Wednesday, which compares with Tuesday when around 10,169 contracts changed hands. Spreading accounted for 7,300 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were steady to one cent per bushel lower at Wednesday’s close, seeing a modest correction after running into upside resistance.
Solid export demand and a lack of significant farmer selling helped underpin beans for most of the session. General weakness in the US dollar index was also supportive for the commodity.
However, the buying interest slowed down as the day progressed.
Large South American supplies remained a bearish influence in the background, although recent strength in the Brazilian real was reportedly limiting farmer sales in the country.
SOYOIL futures were stronger on Wednesday, as adjustments to the soyoil/soymeal spreads provided support.
SOYMEAL futures were weaker on Wednesday.
CORN futures in Chicago were up by three to four cents per bushel on Wednesday, with expectations for seeding delays providing support.
US corn plantings are right in line with the average for this time of year, but wet conditions and forecasts calling for more moisture will cause delays for the crop still left to go in the ground.
The weaker US dollar was also supportive for corn.
WHEAT futures in Chicago were up by one to three cents per bushel on Wednesday, as chart-based buying and the weaker US dollar provided support.
Excessive rain in parts of the southern US Plains was also supportive, as the moisture at this time of year may lead to yield and quality losses for the developing crops.
Solid export demand added to the firmer tone, as Egypt included some US wheat in its latest tender.