By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, March 8 (CNS Canada) – ICE Futures Canada canola closed stronger on Wednesday, reversing after declines earlier in the session.
Losses in the Canadian dollar underpinned canola, as a weaker domestic currency is bullish. Traders say demand for the commodity is strong.
Concern about supplies moving into the spring, as a to-be-determined amount of canola currently sits in fields, also lent support.
Snowstorms across Western Canada fueled trader concern that seeding could be delayed this year, adding to the upside.
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But losses in the US soy complex limited canola’s advances, after driving values into negative territory earlier in the day.
About 13,443 canola contracts traded on Wednesday, which compares with Tuesday when 19,382 contracts changed hands.
Spreading accounted for about 7,198 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
CORN futures in Chicago declined three cents per bushel on Wednesday as new cases of bird flu in the US raise speculation that demand for livestock feed will go down. Ethanol production dropped in the US by 12,000 barrels a day according to the US government.
Profit-taking was a feature ahead of tomorrow’s report, according to an analyst.
SOYBEAN futures at the Chicago Board of Trade finished three cents per bushel weaker on Wednesday, as traders staked out positions ahead of Thursday’s USDA report.
There are ideas Brazil’s agricultural arm, CONAB, will raise production figures for the country’s soybean crop in its next report. Chinese soybean imports are at their lowest in seven years.
SOYOIL futures fell 18 to 19 points Wednesday.
SOYMEAL futures recorded small losses on the day.
WHEAT futures in Chicago dropped eight to nine cents per bushel as traders prepared for large crop estimates in tomorrow’s report.
A new report hiked France’s ending stocks by 250,000 tonnes to 2.96 million tonnes, which was bearish.
However, the soil in Kansas and a few other states is very dry right now and fires have started to burn up some farmland, which was supportive.
