By Jade Markus and Dave Sims, Commodity News Service Canada
ICE Futures Canada canola contracts ended higher on Wednesday, gathering spillover support from sharp advances in Chicago Board of Trade soybeans.
Soybeans gained with losses in the US dollar and the expectation for increased demand.
Crop loss in Argentina and Brazil has opened up the market for US supplies, and the two South American countries may be forced to import this year, which is bullish.
Market watchers expect tight canola supplies, in Canada and internationally, in the upcoming 2016/17 crop year, which added to canola’s strength.
Read Also
North American Grain/Oilseed Review: Canola falls back, wheat rises
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange retreated further on Tuesday despite entering positive territory for…
However, gains in the Canadian dollar against its US counterpart capped advances on Wednesday.
Malaysian palm oil closed lower overnight, which further limited gains.
About 19,805 canola contracts traded on Wednesday, which
compares with Tuesday when 29,301 contracts changed hands. Spreading accounted for about 9,238 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures posted gains of 12 to 21 cents per bushel Wednesday due to currency issues. The US dollar softened which boosted prices across the board for most agricultural products, according to a report.
As well, there are ideas that US exports may increase due to crop losses in Argentina, which was bullish.
On the other side, the rapid pace of soybean plantings in the US was bearish for values. According to the USDA, 73% of the crop had been put into the ground, as of May 29.
Soyoil advanced 37 points, taking strength from Malaysian palm oil which hit its highest point in three weeks.
SOYMEAL futures improved on solid demand following soybeans.
Corn futures ended 8 to 9 cents per bushel stronger on concerns that hot, dry weather this summer will cut into yields.
Values were also supported by US farmers who are switching out some corn acres in favour of soybeans.
However, the USDA said 72% of the corn crop was in good or excellent ahead which was ahead of most analysts’ estimates.
Wheat futures on the Chicago Board of Trade finished nine cents per bushel higher on speculative trade.
The market also got some spillover support from gains in other commodities.
However, winter wheat conditions have improved slightly which was bearish for prices.
– Prices for South African wheat have reached record highs due to prolonged drought and a downturn in the national currency, according to a report.
– The wheat harvest in France could be reduced by 6.3 percent due to recent heavy rains, an analyst said.
