By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Jan. 3 (CNS Canada) – ICE Futures Canada canola contracts were stronger in thin trade on Wednesday, as gains in the Chicago soy complex and a slightly weaker tone in the Canadian dollar provided support.
Oversold price sentiment contributed to the gains, as canola continued to correct off of the nearby lows hit last week.
Solid end user demand was also said to be supportive. However, rising carryout forecasts and expectations for a possible increase in acres this spring tempered the gains.
Read Also
Canadian Financial Close: C$ firm Friday
Glacier FarmMedia — The Canadian dollar strengthened Friday, as dovish comments out of the United States Federal Reserve weighed on…
About 13,539 canola contracts traded on Wednesday, which compares with Tuesday when 11,553 contracts changed hands. Spreading accounted for 6,644 of the contracts traded.
Soybean futures at the Chicago Board of Trade moved higher on Wednesday. Weather concerns in Argentina remained supportive, as the nearby forecasts turn hot and dry in the major soybean growing country. However, there was some rain over the past weekend and more moisture is seen in the longer-range outlooks.
Gains in crude oil and general strength in outside equity markets also accounted for some spillover buying interest in soybeans.
Cold temperatures across the Midwest were reportedly causing some logistics issues moving grains and oilseeds.
Corn futures were steady to lower at the close, retreating from four-week highs after running into resistance. However, South American weather uncertainty and strength in wheat provided some support.
All three United States wheat contracts were higher, with Kansas City leading to the upside as declining crop ratings and cold temperatures across the Plains provided support.
The extent of the damage or possible winterkill won’t be known until the spring, but the possibility of yield reductions and reseeding to other crops was enough to give wheat a boost today.
On the other side, ample world wheat crops and relatively favourable conditions in the Black Sea region tempered the gains.
