By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, August 27 – ICE Futures Canada canola contracts were up at Thursday’s close, as gains in CBOT soyoil provided some spillover support.
Advances in crude oil and the North American equity markets added to the firmer tone as canola corrected off of its nearby lows.
The need to keep some weather premiums in the Canadian futures helped underpin canola as well, as the market will likely need to ration demand going forward, according to participants.
However, harvest pressure will likely limit any need for end users to pay up in the short term, which limited the upside potential.
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About 16,863 canola contracts were traded on Thursday, which compares with Wednesday when 26,797 contracts changed hands.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed eight to 16 cents per bushel higher Thursday as many global stock markets rallied.
On Monday Chinese stocks plummeted, sinking other stocks, but by Thursday the economic outlook improved, buoying soybean prices.
SOYOIL prices settled stronger on Thursday as crude oil prices gained.
Higher crude oil prices are bullish for soy as it can be refined into biodiesel.
SOYMEAL closed mixed Thursday.
CORN futures closed one to three cents per bushel stronger Thursday, also supported by reduced economic concerns.
Corn prices also rallied due to data from the weekly export report, as export increases were reported for Japan, Mexico, Panama, Taiwan, and Peru.
However, bearish weather in the US Midwest could pressure prices in days to come.
WHEAT futures in Chicago closed one to five cents per bushel lower Thursday, as the International Grains Council announced that global grain supplies will reach historic highs in the 2015-16 season.
Wheat prices have been plagued by a global supply glut and a lack of demand, and prices have been consistently moving lower as sellers try to find demand.
– Egypt is tendering an unspecified amount of wheat for October 1-10 shipment, analysts say.
– Market watchers say it’s early in the crop year, but sales continue to be less than needed to meet USDA projections.
