By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, January 4 (CNS Canada) – ICE Futures Canada canola gained back ground on Wednesday, but strength in the Canadian dollar limited the market’s upside potential.
Canola followed Chicago Board of Trade soybeans and soyoil, as heavy rains in Argentina caused traders to push the market higher.
Strong commercial demand for canola added to the upside.
However, the loonie had gained close to one per cent against the US currency by close on Wednesday, which capped canola’s advances.
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A stronger Canadian dollar makes the country’s commodities less appealing to international buyers.
About 14,785 canola contracts traded on Wednesday, which compares with Tuesday when 22,349 contracts changed hands.
Spreading accounted for about 4,920 of the contracts traded.
Durum and barley futures were untraded and unchanged, while milling wheat was revised higher after the close.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade corrected higher by 20 cents per bushel on Wednesday, after hitting their lowest point in a month and a half on Tuesday.
Weather conditions in South America are not as favourable as a few days ago, which also underpinned prices.
China has been buying supplies in anticipation of the country’s New Year celebrations which begin on January 28.
SOYOIL futures firmed on Wednesday.
SOYMEAL futures also posted gains, tracking soybeans and enjoying support from the livestock sector.
CORN futures in Chicago ended four cents per bushel higher on Wednesday due to weakness in the US dollar and strength in crude oil prices.
The open interest increased on the session suggesting some buyers had re-entered the market.
Corn futures have gained substantially on soybeans in recent days, which could allow corn to win back some acreage in the New Year.
WHEAT futures in Chicago finished 10 to 12 cents per bushel stronger on Wednesday, taking spillover support from corn and soybeans.
Cold temperatures in Ukraine and the US Plains are raising concerns over possible winterkill. The USDA pegged the hard red winter wheat crop in Kansas as 44 per cent good or excellent, which was below
the previous estimate of 52 per cent.
Ethiopia has put out a tender for 720,000 tonnes of milling wheat.
