Intercontinental Exchange (ICE) canola futures were stronger at midday Wednesday, getting support from other edible oils, which have been on the upswing due to technical buying, according to a trader.
However, canola backed off from earlier highs after the U.S. Department of Agriculture (USDA) announced the cancellation of two private sales of soybeans totaling 328,000 tonnes, he said.
Soybeans on the Chicago Board of Trade (CBOT) were getting spillover support from corn following "disappointing yields in the U.S.," the trader said.
Questions have also arisen regarding the Statistics Canada production update released Monday. "Some analysts are saying if you look at what the [provinces] are using, production is down another million tonnes from that 12.8 million," the trader said.
He said Saskatchewan Agriculture pegged the province's canola yields at 20 bushels per acre, versus the 21.2 used by Statistics Canada.
In terms of pressure on canola, the trader said there has been hedging, noting farmers are letting go some of their canola, including selling it off the combine.
The Canadian dollar was slightly higher which added a little bit more pressure on canola. The loonie was at 79.10 U.S. cents compared to Tuesday's close of 78.98.
Approximately 20,600 canola contracts were traded as of 11:48 ET.
Prices in Canadian dollars per metric tonne at 11:48 ET:
Nov 883.40 up 11.10
Jan 875.00 up 12.00
Mar 860.80 up 10.90
May 843.50 up 9.70
(END) Dow Jones Newswires