By Phil Franz-Warkentin, Commodity News Service
Winnipeg, April 13 (CNS Canada) – ICE Futures Canada canola contracts were up on Wednesday, recovering from recent declines as sharp gains in soybeans spilled over to pull canola up as well.
A weaker tone in the Canadian dollar contributed to the gains in canola, with both exporters and domestic crushers said to be showing solid demand.
Concerns over excess dryness in the western Canadian Prairies and the possibility of excess moisture in the east helped keep some weather premiums in the futures as well.
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However, canola ran into resistance, and lagged soybeans to the upside. Scale-up farmer selling also tempered the advances.
About 28,089 canola contracts were traded on Wednesday, which compares with Tuesday when 21,604 contracts changed hands. Spreading accounted for about 18,664 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade were up 15 to 19 cents per bushel on Wednesday, hitting fresh nine-month highs as speculative buying built on itself.
Mounting weather concerns in Argentina were a supportive influence, as heavy rains and flooding in the South American country are said to be hampering harvest operations and cutting into the quality of the crop.
Solid export demand from China contributed to the gains, according to participants.
However, large world soybean supplies remained a bearish influence in the background. Ideas that some intended corn acres will go into soybeans instead in the US also kept a lid on the advances.
SOYOIL futures were higher on Wednesday, but lagged the rest of the soy complex to the upside as losses in crude oil put some pressure on values.
SOYMEAL futures were up on Wednesday.
CORN futures in Chicago were up by eight to 11 cents per bushel on Wednesday, breaking above a number of major moving averages as some buy stops were hit on the way up.
Dryness concerns in parts of Brazil and ideas that export demand for US corn remains strong contributed to the gains.
However, the large world and US supply tempered the upside potential. Forecasts calling for relatively favourable planting weather in across much of the Midwest over the next week also put some pressure on values.
WHEAT futures in Chicago were up by eight to nine cents per bushel on Wednesday.
Spillover from the gains in corn and soybeans helped prop up the wheat market, with much of the buying technical in nature as prices continued to recover off of nearby lows.
On the other side, ample world wheat supplies and only lacklustre demand for US exports tempered the gains. Forecasts calling for favourable rainfall in many dry southern US winter wheat growing regions also weighed on values.
