By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, April 20 – THE ICE Futures Canada canola market finished stronger on Wednesday, taking strength from soybeans and some fund buying.
Prices were also bolstered by advances in Malaysian palm oil and crude oil.
Traders were staking out positions ahead of Thursday’s planting intentions report compiled by Statistics Canada. Canola acres are expected to be in line or slightly higher than last year’s numbers at the same time, according to analysts.
Portions of Western Canada could use rain ahead of seeding which was supportive.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
However, the Canadian dollar was up a third of a cent relative to its US counterpart, which made canola less enticing to international customers.
Farmer selling was steady and losses in soyoil were bearish.
Around 54,579 canola contracts traded on Wednesday, which compares with Tuesday when around 42,741 contracts changed hands. Spreading accounted for about 30,598 of the contracts traded.
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 closed two to twenty four cents per bushel stronger on Wednesday as fund buying increased and rain in Argentina put crops at risk.
Investors have added to their long bets, market watchers say.
Rain in Argentina is delaying harvest and has the potential to cause severe crop-loss, which is bullish.
Gains in crude oil added to the advances.
SOYOIL prices settled weaker on Wednesday.
SOYMEAL closed stronger on Wednesday, tracking gains in nearby grain and oilseed markets.
CORN futures closed three to five cents per bushel higher on Wednesday, as dry conditions in Brazil put crops at risk.
Brazil isn’t expected to get rain until next week, market watchers say, which is bullish.
Brazil has also lifted its import tax, which increases the likelihood of the country buying US corn, which further supported prices.
Gains in crude oil added to the bullish tone.
WHEAT closed 15 to 18 cents per bushel stronger on Wednesday, as some growing regions in the US are at risk of flooding, analysts say.
Investor short-covering was also a feature, market watchers say.
– Russia’s wheat crop is expected to be the biggest in eight years, analysts say.
– Ukraine’s wheat production estimates have been raised from 18.5 million metric tonnes to 19.8 million metric tonnes.
