By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
Winnipeg, Jan. 27 – ICE Futures Canada canola contracts were stronger on Wednesday, as advances in CBOT soybeans and soyoil helped pull the Canadian futures off of their nearby lows.
Solid exporter and domestic crusher buying interest contributed to the strength in canola, as demand from both fronts continues to move at a record pace.
Supportive chart signals added to the gains, as values bounced off of the nearby lows hit on Tuesday.
However, recent strength in the Canadian dollar did limit the advances. Scale-up farmer selling also put some pressure on values.
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About 24,830 canola contracts were traded on Wednesday, which compares with Tuesday when 13,769 contracts changed hands. Spreading accounted for about 19,404 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures rose six cents per bushel Wednesday, fuelled by adverse weather conditions in South America. Dry regions in Argentina are becoming a concern for soybean watchers while much of the Brazilian harvest has been delayed due to rain.
Although the combined harvest in Brazil and Argentina is expected to be a record one, yields could be down.
In December, China imported 9.1 million tonnes of soybeans which was the second highest monthly amount ever.
SOYOIL ended 13 points higher, following the gains in soybeans.
SOYMEAL futures ended higher on Wednesday as traders went bargain-hunting.
CORN futures on the Chicago Board of Trade finished unchanged on Wednesday. Recent speculation over a poor corn crop in South Africa was tempered today by a report the country will still turn out a 7.4 million tonne harvest.
However corn prices received some support from wheat prices.
On the flip side, stronger crude oil prices lent some strength to corn.
WHEAT futures on the Chicago Board of Trade dropped for the first time in a week as ideas the market was overbought took hold. The nearby March contract lost eight cents on the day. The decline came on the heels of a rally brought on by speculation Russia will cap grain exports in the coming days.
The slow pace of US exports was also bearish, according to a report.
The March contract seems to have found a new support level at US$4.75 a bushel.
– Wheat futures in the European Union are moving higher as the rally in crude oil and equities has improved the market.
– UK breakfast cereal Weetabix has announced it plans to source all of its wheat from local farmers. The move is aimed at guaranteeing the quality of the company’s wholegrain wheat, according to a release from the company.
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