By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, July 13 (CNS Canada) – ICE Futures Canada canola ended stronger on Wednesday, supported by gains in Chicago Board of Trade soybeans, and soggy fields in Manitoba and Saskatchewan.
CBOT soybeans advanced on Wednesday as warm, dry conditions in the US Midwest could put crops at risk, which caused spillover support to canola.
On the other side of things, many canola fields in Western Canada are too wet, which kept the market underpinned.
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Though crop conditions are generally favourable, some crops are sitting in standing water, which could curb yields.
Funds are sitting in a net short position, traders say, which could cause canola to extend gains.
Canola’s technical bias is to the upside, which is bullish.
About 21,979 canola contracts traded on Wednesday, which compares with Tuesday when 13,366 contracts changed hands. Spreading accounted for about 7,818 of the contracts traded.
Barley was untraded and unchanged, while milling wheat and durum were revised lower after the close.
Settlement prices are in Canadian dollars per metric tonne.
Corn futures continued to climb on fears that looming hot and dry weather in the Midwest will cut into crop development. By close, prices had settled eight to nine cents higher on the Chicago Board of Trade.
The hot weather is expected to occur right when corn is at the filling stage which is especially bad for yields.
On the other side, over three-quarters of the US crop is currently rated good to excellent which helped limit gains.
SOYBEAN futures finished 13 to 20 cents per bushel higher on similar weather threats, analysts said.
The market also continued to draw strength from Tuesday’s USDA report that pegged US stockpiles at a smaller amount than expected.
The most-active November contract settled above the technically-important US$11.00 per bushel level.
Soyoil finished lower due to losses in crude oil.
SOYMEAL futures rose, tracking soybeans.
Wheat futures on the Chicago Board of Trade ticked slightly higher, taking strength from spillover gains in corn.
Interest in US wheat is coming from some parts of the livestock sector who are looking around for cheaper supplies of feed.
Egypt has resumed buying wheat after briefly halting some imports due to concerns over ergot fungus, according to a report.
– Serbia is expected to export 1.5 million tonnes of wheat this year, according to a report.
– Japan is tendering for 180,000 tonnes of food quality wheat from the US, Canada and Australia.
