By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Nov. 21 (CNS Canada) – ICE Futures canola contracts were stronger on Wednesday, as spillover from a rally in Chicago Board of Trade soyoil provided support.
Speculative short-covering contributed to the gains, as traders squared positions ahead of the Thanksgiving holiday in the United States. Markets in the country will be closed Thursday, while canola will trade its normal hours.
Recent weakness in the Canadian dollar was also supportive, although the currency was firmer on Wednesday.
Canola remains relatively expensive compared to other oilseeds, which tempered the upside, according to a broker. The overall technical trend was also still bearish, making any gains a selling opportunity from a chart standpoint.
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About 20,258 canola contracts traded, which compares with Tuesday when 20,121 contracts changed hands. Spreading accounted for 14,340 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade showed some modes strength on Wednesday, amid heightened optimism over the possibility for improving trade relations between the United States and China.
However, there was still little fire beyond the optimistic trade deal smoke, which tempered the upside ahead of next week’s G20 summit in Argentina.
Gains in crude oil and the resulting bounce in soyoil also provided some spillover support for beans.
Good South American production prospects and increased concerns over the African Swine Fever in China also put some pressure on values.
U.S. markets will be closed Thursday for Thanksgiving and only trade for reduced hours on Friday. Pre-holiday positioning accounted for some of the activity.
CORN futures settled near unchanged, with little fresh news to provide direction as traders adjusted positions ahead of the holiday.
Seeding operations were running ahead of normal in Argentina, with 55 per cent of intended corn acres already in the ground, according to reports out of the country. That compares with the average for this time of year of 43 per cent.
WHEAT futures were mixed, with gains in Minneapolis spring wheat and losses in the winter wheat contracts.
Large world supplies coupled with limited demand for U.S. wheat kept bids under pressure ahead of the holiday, with Russian wheat still competing on the export market.
Concerns over seeding delays for the last of the U.S. winter wheat still to be planted were slightly supportive, although conditions remain relatively favourable for the crops already in the ground.
