By Jade Markus and Erin DeBooy, Commodity News Service Canada
ICE Futures Canada canola ended higher on Wednesday, propped up by advances in oilseed markets south of the border.
Chicago Board of Trade soybean prices ended higher with renewed concerns about the country’s upcoming pod-setting phase.
The US Midwest is expected to be hot and dry into August, forecasts say, which caused spillover support in the canola market.
Traders say canola is due for a bounce, as prices have become oversold, which is bullish.
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A weaker Canadian dollar also underpinned the market, as a lower loonie makes canola more appealing to international buyers.
Malaysian palm oil closed higher overnight, which added to the advances.
About 15,727 canola contracts traded on Wednesday, which compares with Tuesday when 15,848 contracts changed hands. Spreading accounted for about 876 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 at the Chicago Board of Trade strengthened on Wednesday amid warm weather forecasts.
Prices for the August contract rallied to daily highs of more thanUS$10 per bushel, settling at US$10.1050.
The US Farm Belt is expecting hot temperatures in the next six to 10 days, which could threaten yields.
August is the most important month for soybean development, and the warm weather is causing traders to boost prices.
SOYOIL prices closed slightly lower on Wednesday, with the August contract settling at 29.53 US cents per pound.
Losses in crude oil put spillover pressure on the vegetable oil market.
SOYMEAL closed stronger on Wednesday.
CORN futures strengthened slightly on Wednesday.
Prices for the September contract climbed to US$3.3575 per bushel after dipping as low as US$3.3175 in early trading.
A heat wave across the Midwest is forecast in the coming weeks, however corn crops are currently rated 82 to 84 per cent good to excellent, limiting
gains.
WHEAT closed slightly lower on Wednesday.
The September contract closed at US$4.1475 per bushel, settlingslightly above the daily low of US$4.1400.
The European Union’s grain harvest is under way with good prospects foryield and quality, despite France’s recent crop struggles.
– Extreme heat and humidity in South Dakota is stressing crops, according to the USDA. However, winter wheat harvested was 82 per cent, which is still
ahead of last year by 36 per cent.
– Extreme heat and humidity in South Dakota is stressing crops, according to the USDA. However, winter wheat harvested was 82 per cent, which is still
ahead of last year by 36 per cent.
– Russia increased its grain production forecast for April, 2016, by four per cent to 107.7 million tonnes, according to the USDA.
