By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, May 14 – ICE Futures Canada canola contracts corrected lower on Wednesday, undermined by profit taking after the market broke above key resistance levels earlier in the session, analysts said.
Further downward pressure came from the upswing in the value of the Canadian dollar, and spillover from the sharp losses seen in Chicago wheat futures.
Expectations that 2013/14 Canadian canola carryout stocks will be very large added to the bearish tone.
However, some spillover support came from the advances seen in Chicago soyoil futures, as well as concerns about delayed planting in Western Canada this spring.
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Continued ideas that canola is undervalued compared to other oilseeds and steady demand for the commodity also underpinned the market.
About 23,918 canola contracts were traded on Wednesday, which compares with Tuesday when 29,260 contracts changed hands.
Milling wheat, durum and barley futures were untraded, though wheat and barley prices were adjusted after the close Wednesday.
SOYBEAN futures at the Chicago Board of Trade ended three to four cents per bushel higher on Wednesday as cool, wet weather in the Midwest continues to disrupt planting efforts.
Larger-than-expected supplies of soybeans from South America could be arriving in the US, an analyst said.
Speculators remain long on soybeans due to ideas of tight supplies in the Midwest, said an analyst.
SOYOIL futures were 15 to 17 points higher on Wednesday, underpinned by steady demand, an analyst said.
SOYMEAL futures were higher following soybeans.
CORN futures in Chicago were four to seven cents per bushel lower on Wednesday as forecasts of warm, dry weather in the Midwest are expected to allow farmers to finish planting efforts.
“We’ve got kind of a window here over the next ten days in the Dakota’s and Wisconsin, to make progress,” said market analyst Brian Rydlund of CHS Hedging in St. Paul, Minnesota.
The corn planting pace has squeaked above the five-year average.
WHEAT futures in Chicago were 15 to 19 cents per bushel lower Wednesday and 16 to 18 cents per bushel lower in Kansas City after much-needed rain fell on crops of hard-red winter wheat, during their critical heading stage, in the southern Great Plains. More precipitation is expected in the next week, according to a weather forecaster.
Farmers are expected to hurry seeding of spring wheat, particularly high-protein varieties, in North Dakota and Minnesota due to dry weather, an analyst said.
There are concerns producers in the northern Plains won’t be able to import sufficient quantities of fertilizer due to recent demand, according to a report.
• Researchers in Australia have discovered the first record of a wheat pathogen developing fungicide resistance in Australia, according to a report
• India’s Associate Chambers of Commerce believe it can produce 10 million metric tonnes of wheat exports through sustained annual production.
• The Ukraine Ministry says the county has exported 29.55 MMT of grains so far this season, including 8.39 MMT of wheat.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
