By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Sept. 6 (CNS Canada) – ICE Futures Canada canola contracts settled within fifty cents of unchanged on Wednesday, after trading both higher and lower in choppy two-sided activity.
A move by the Bank of Canada to raise interest rates sent the Canadian dollar soaring sharply higher, gaining roughly a cent relative to its US counterpart. The rising currency was initially bearish for canola, but other news provided support throughout the session.
Statistics Canada released its ending stocks report this morning, pegging canola supplies as of July 31 at 1.35 million tonnes. That was at the low end of trade estimates and well off the 2.09 million carried over the previous year. The number was seen highlighting the tight supply situation and the need for a large crop this year.
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Gains in Chicago Board of Trade soybeans also provided some spillover support for canola, according to participants.
About 24,053 canola contracts traded on Wednesday, which compares with Tuesday when 19,373 contracts changed hands. Spreading accounted for 13,438 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Soybean futures at the Chicago Board of Trade were higher on Wednesday, finding some support from ongoing weather concerns across the Midwest.
The threat caused by Hurricane Irma to southern crops and likeliness of shipping delays provided additional support.
Solid export demand added to the firmer tone, according to participants.
US soybean condition ratings were left unchanged at 61 per cent good-to-excellent in the latest weekly USDA report.
Corn prices were up one to three cents per bushel, finding a boost from a USDA report that the US had sold more than 250,000 tonnes to Mexico.
Weather concerns, both from Hurricane Irma and the dry Midwest, were also supportive.
Weekly USDA crop ratings improved slightly for corn, rising 1 point in the top two categories, with 61 per cent now rated good to excellent.
US wheat futures were up two to 18 cents per bushel, with the largest advances in the Minneapolis spring wheat market.
Chart-based buying accounted for much of the strength in wheat, as the nearby chart signals are pointed higher.
The US spring wheat harvest was estimated at 89 per cent complete in the latest weekly report, which was in line with the year-ago pace.
Canadian wheat ending stocks, including durum, were pegged at 6.9 million tonnes by Statistics Canada, which was well above the 5.2 million tonnes carried over the previous year.
