By Jade Markus and Dave Sims,Commodity News Service Canada
ICE Futures Canada canola contracts ended higher on Thursday, following advances in Chicago Board of Trade soybeans and soymeal.
CBOT soybeans moved to a two-year-high on Thursday, as crop loss in Argentina propped up the market.
Losses in the Canadian dollar against its US counterpart added to canola’s advances.
Crush margins have gained close to ten dollars, one Winnipeg-based trader said, which indicates canola has room to advance.
Malaysian palm oil closed higher overnight, which further propped up prices.
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However, traders were unwinding July/November spreads, which put a lid on the market.
About 34,796 canola contracts traded on Thursday, which compares with Wednesday when 19,805 contracts changed hands. Spreading accounted for about 20,662 of the contracts traded.
Durum was untraded and unchanged, while barley and milling wheat moved higher throughout the day.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures surged 13 to 44 cents per bushel Thursday on ideas of growing US demand and waning crop prospects in Argentina.
Poor weather in South America has vaulted the US to the front of the line when it comes to supplying the world with soybeans, an analyst said.
Weather models for the month of June have turned hotter and drier which was bullish, according to a report.
Soyoil followed the vegetable oil market slightly higher, rising seven points.
SOYMEAL futures soared tracking soybeans amid strong demand from the livestock sector.
Corn futures ended mostly stronger on ideas of future demand and some speculative buying.
Brazil’s corn crop is expected to be reduced due to drought, which could prompt buyers to turn to the US instead.
Talk of a La Nina weather event this summer has traders clamouring for supplies before hot, dry conditions set in.
Wheat futures on the Chicago Board of Trade finished 11 cents per bushel higher, taking strength from spillover gains in corn and soybeans.
Heavy rains in grain-growing regions of the European Union have cut into production prospects which was bullish for US supplies.
However, early reports indicate the US crop could have better-than-expected yields, which put some pressure on values.
– Hard red wheat crops in Kansas could start being harvested by the end of next week, according to a report.
– Brazilian corn exports are expected to hit 23 million tonnes in 2016, according to the country’s National Association of Cereal Exporters. That is down from the previous estimate of 30 million tonnes.
