ICE Canadian canola futures slipped lower from earlier gains on Wednesday as it appeared that pressure was likely to spill over from US markets after a bearish US Department of Agriculture crop report, traders said. Most-active May canola moved to slightly lower from up more than 1 percent before the USDA report's release.
USDA report seen as bearish for wheat and corn, which canola traders said will weigh down soybean futures and pressure canola in sympathy. Total canola volume a light 543 contracts at 8:18 am CST (1418 GMT), amplifying price swings. Most-active May down 70 cents at $384.20; volume 427. July down 50 cents at $389.40 on volume of 89.
May canola has finished higher three straight sessions. Open interest in front-month March down to 0, expiry Friday. Traders see canola trading mixed on CBOT open at 9:30 am CST (1530 GMT). CBOT soybeans called steady to down 3 US cents on open.
US Department of Agriculture reduced projection of US soybean ending stocks to 190 million bushels, slightly less than analysts had expected. Canadian dollar was trading at $1.0278 to the US currency, or 97.30 US cents at 8:15 am CST (1415 GMT), down from $1.0264 to the US dollar, or 97.43 US cents at Tuesday's close. Canadian dollar has finished higher versus US dollar eight straight sessions.