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North American grain/oilseed review: Canola rises Wednesday

| 2 min read

By Phil Franz-Warkentin

 

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was stronger on Wednesday, nearing major chart resistance.

The July contract managed to settle above C$680 per tonne, with the next upside target at the February high of C$687.60 per tonne.

Gains in the Chicago soy complex and European rapeseed futures provided spillover support, while Malaysian palm oil was softer on the day.

With exports and the domestic crush continuing at a solid pace, canola supplies are thought to be tightening, and the market is working to ration demand, according to participants.

There were 51,812 contracts traded on Wednesday, which compares with Tuesday when 55,786 contracts changed hands. Spreading accounted for 25,046 of the contracts traded.

 

SOYBEAN futures at the Chicago Board of Trade were stronger Wednesday, with chart-based positioning and ideas tariff uncertainty has been priced into the markets for the time being behind some of the activity.

Broad weakness in the United States dollar internationally contributed to the strength in beans, as did talk that China may be open to trade negotiations. However, demand for U.S. grains and oilseeds from the country remains virtually non-existent.

Brazil’s large crop kept a lid on the upside in soybeans.

Monthly crush data released Tuesday showed 194.5 million bushels of soybeans crushed in the U.S. in March. That was up nine per cent from February, but short of what was processed the same month a year ago.

 

CORN futures were firm Wednesday. While there were no fresh U.S. export sales announced this morning, solid business is expected in Thursday’s weekly export report.

Weekly US ethanol production dipped by 9,000 barrels per day over the latest reporting period, coming in at 1.012 million barrels per day. Stocks of the renewable fuel tightened to 28.8 million barrels, down by about 220,000 barrels on the week.

 

WHEAT was thought to be due for a correction after losses earlier in the week. The softer U.S. dollar was especially supportive for wheat, with additional export sales likely.

While U.S. wheat futures were rising, wheat prices in Europe dropped to contract lows with news that France was bypassed in a recent Algerian tender in favour of cheaper Black Sea wheat.