By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, April 19 (CNS Canada) – ICE Futures Canada canola closed stronger on Wednesday.
The market was propped up by sharp losses in the Canadian dollar, which is bullish for canola as it makes the commodity more affordable for international buyers.
By close on Wednesday the loonie had lost close to 0.80 per cent against its US counterpart, or more than half a cent.
The market was also gathering independent strength as canola left over from last year still sits unharvested in some fields in Western Canada.
Spillover support from Chicago Board of Trade soybeans and soy oil added to the market’s upside. Soybeans advanced with technical buying.
Around 25,274 canola contracts were traded on Wednesday, which compares with Tuesday when around 28,621 contracts changed hands. Spreading accounted for about 16,102 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade finished two to four cents per bushel stronger on the mid-week session, taking strength from speculator buying and the surprising pace of US exports for the 2016/17 marketing year, which are running ahead of USDA projections.
There are reports of rain and hail in Nebraska, Missouri and other parts of the Midwest, which was supportive.
However, prices for Malaysian palm-oil hit their lowest point in over half a year, which dragged on values.
SOYOIL futures climbed 37 to 44 points higher on Wednesday.
SOYMEAL futures were lower, with spreading against soyoil a feature.
CORN futures in Chicago finished narrowly mixed on Wednesday with the most active months unchanged.
Excess rain in parts of the corn belt was mildly supportive, however there were also ideas that producers should be able to speed up planting in other areas.
Weekly ethanol production increased slightly, which helped prop up prices.
WHEAT futures in Chicago suffered mild losses on the day, falling one to three cents per bushel, as favourable weather across the US Southern Plains weighed on prices.
The Argentine wheat harvest was pegged at 17.5 million tonnes. If that holds it would be significantly more than last year’s total of 16.3 million tonnes.
Estimates from Canadian analysts suggest Canadian wheat acres will be smaller in 2017 than 2016. Statistics Canada is scheduled to release its acreage estimates on Friday.