By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 4 – THE ICE Futures Canada canola market ended mixed on Wednesday. The July contract finished lower as traders took profits while vegetable oil advances and currency issues lifted the more-deferred values.
The Canadian dollar was nearly one cent lower relative to its US counterpart which made it more attractive to domestic crushers and foreign buyers.
The US soy complex realized gains on Wednesday which underpinned the market.
A lack of farmer selling and steady commercial buying was bullish for values, according to a trader.
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By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Thursday, in gleaning support…
Dry weather across Alberta was supportive for canola while crude oil was also higher.
However, weakness in financial markets cast a bearish tone over canola.
The rapid pace of soybean planting in the US limited the gains.
Around 35,377 canola contracts traded on Wednesday, which compares with Tuesday when around 21,497 contracts changed hands.
Milling wheat, barley and durum were untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up by three to five cents per bushel on Wednesday after bouncing around both sides of unchanged, seeing a modest correction after Tuesday’s declines.
Ongoing uncertainty over the size of Argentina’s crop provided some support, with production forecasts continuing to deteriorate in the country. However, drier weather in the forecasts should allow farmers to make headway bringing in their crops.
Gains in crude oil helped underpin soybeans, given the crop’s connection to biodiesel production.
SOYOIL and SOYMEAL futures were up on Wednesday.
CORN futures in Chicago were down by one to five cents per bushel on Wednesday, pressured by the active pace of spring seeding seen across the Midwest.
Strength in the US dollar index was also said to be bearish for corn.
However, news of a fresh 107,500 tonne export sale of US corn to Japan was supportive. Declining production prospects in Brazil, due to dryness, helped limit the losses as well.
WHEAT futures in Chicago were narrowly mixed on Wednesday, settling within one a penny of unchanged.
A crop tour of Kansas is taking place this week, and early anecdotal reports from the major wheat producing state are showing solid yields of 40 to 60 bushels per acre. however, reports of rust were also surfacing.
The gains in the US dollar index were bearish for wheat, keeping US supplies expensive for global importers.
– The USDA’s Australian attaché pegged that country’s upcoming 2016/17 wheat crop at 24 million tonnes. That’s in line with the previous year, but 500,000 tonnes below the current USDA estimate.
– Poor crop conditions in India have seen the country increase its wheat imports, with traders reportedly purchasing 140,000 tonnes of wheat from Australia over the past few weeks.
