By Dave Sims, Commodity News Service Canada
Winnipeg, Sept. 20 (CNS Canada) – The ICE Futures canola platform ended slightly higher on Thursday, following gains in the U.S. soy complex.
Weather issues continue to lend support to futures, as farmers in parts of Western Canada waited for drier conditions to finish the harvest.
The November contract continues to receive technical support at the C$485 per tonne mark.
Spec buying was a feature of the morning’s activity as the trade largely shrugged off yesterday’s report from Statistics Canada, which raised production estimates.
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However, recent strength in the Canadian dollar was bearish for values.
The technical bias appears pointed lower.
About 20,042 canola contracts traded, which compares with Wednesday when 15,324 contracts changed hands. Spreading accounted for 12,726 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade continued to correct higher Thursday, in the wake of heavy losses over the past few weeks that have driven the market to 10-year lows.
A lack of trade progress between China and the United States continues to overhang the market.
Argentina is considering hiking its export tax on soybeans from 28 per cent to 33 per cent. The proposal was laid out in the government’s recent budget.
The corn market rose Thursday as forecasts called for rain in the upper Midwest, which is expected to halt the harvest.
Demand for U.S. livestock feed remains reasonably solid while ethanol sales are steady.
Hurricane Florence has devastated the corn crop in the Carolinas. Fortunately, it only makes up a small portion of the U.S. supply.
Wheat futures in Chicago, Minneapolis and Kansas City ended relatively unchanged in choppy trading.
Northern Africa has increased its purchases of wheat in recent weeks, but Russia seems to be the country that is benefiting the most due to recent weakness in the ruble.
According to the USDA, the U.S. exported 468,000 tonnes of wheat last week, which was on the lower end of expectations.
