By Terryn Shiells and Dave Sims, Commodity News Service Canada
Winnipeg, June 17 – Canola contracts on the ICE Futures Canada trading platform ended sharply higher for the second consecutive session on Wednesday, following the gains seen in Chicago soybean futures.
Follow-through buying and the tight Canadian canola supply situation added to the bullish tone, traders said.
Traders are also worried about weather problems in Western Canada, as forecasts are calling for only light rains in the drought-stricken parts of Alberta and Saskatchewan this week, when heavy precipitation is needed to provide relief.
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However, weakness in Chicago soyoil futures and the large global oilseed supply situation limited the advances.
The nearby July contract also ran into resistance at the C$500 per tonne level earlier in the trading session, analysts added.
About 29,102 contracts traded on Wednesday, which compares with Tuesday when 26,530 contracts changed hands. Spreading accounted for 20,288 of the trades.
Milling wheat, durum and barley futures were untraded and unchanged.
SOYBEANS rose 10 to 12 cents US per bushel higher on Wednesday, as traders exited positions and covered shorts, according to a report.
Soybean planted acreage in the US will almost certainly be less than initially expected this year, as many fields are dealing with too much water, said a trader.
However, high interest rates and a tight credit market for US farmers put some downward pressure on the market, analysts said.
SOYOIL futures in Chicago ended slightly lower on the day.
SOYMEAL futures finished higher, following soybeans.
CORN futures on the Chicago Board of Trade posted gains of five to six cents per bushel Wednesday, as short covering from investors offset selling by famers.
More moisture in the eastern and Southern Plains is expected over the weekend. Fields across the US Midwest remain water-logged, said participants.
Indonesia is reportedly shopping around for 50,000 metric tonnes of supplies.
Chicago wheat futures inched up two to four cents per bushel Wednesday after excess rain threatened to decrease yields and hamper harvest efforts in the US. The pending arrival of Tropical Storm Bill is only expected to add to the problem, according to analysts.
Prices were also correcting themselves after falling to their lowest levels in more than two weeks in recent trading sessions.
Yields in Texas are expected to be poor, according to an analyst.
• Australia has cut its production forecast for the 2015/16 wheat crop due to dryness caused by El Nino, according to a report.
• Japan’s Ministry of Agriculture said it would import 18,720 tonnes of feed-quality wheat.
• An investigation is underway in Manila, Philippines after 16 flour millers and 12 baking houses were accused of violating the price act. Authorities say the price of wheat in the world market dropped 29% between January and April but the price of flour and break remained stagnant.
Settlement prices are in Canadian dollars per metric ton.
