By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, April 5 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Wednesday, continuing to recover off of nearby lows as a rally in Chicago Board of Trade soyoil provided some spillover support.
Fund buying contributed to the firmer tone in canola, as speculators covered some of their recently acquired short positions, according to traders.
A softer tone in the Canadian dollar, tightening old crop supplies, and a lack of significant farmer selling all added to the move higher in canola.
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However, the large South American soybean crop and expectations for big North American oilseed acres this spring limited the advances.
About 15,885 canola contracts traded on Wednesday, which compares with Tuesday when 19,814 contracts changed hands. Spreading accounted for 9,130 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed five to six cents per bushel stronger on Wednesday, underpinned by fund-buying.
The market dropped multiple sessions in a row, which brought some support to values.
Rain in Argentina has the potential to cause flooding in the country, which was also bullish.
Advances in the Malaysian palm oil market spilled over to soy oil, and in turn soybeans, adding to the upside.
SOYOIL prices closed higher on Wednesday.
SOYMEAL closed stronger Wednesday.
CORN futures advanced one to two cents per bushel on Wednesday, also underpinned by fund short covering.
Reports of limited farmer selling were also supportive.
Spill-over strength from soybeans added to the upside.
WHEAT closed about three cents per bushel stronger on Wednesday, gathering strength from other commodity markets.
Investors are also watching US weather, which underpinned values.
Areas in Kansas are expected to see severe thunderstorms, which could hurt the region’s crops.
