By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 7 (CNS Canada) – ICE Futures Canada canola closed unchanged to higher on Wednesday.
The market was gathering spill-over support from the Chicago Board of Trade soybean market.
“I think a little bit of a nervous rally in the US markets,” said Ken Ball of PI Financial Corp. in Winnipeg, adding that the United States Department of Agriculture will release its supply and demand estimates on Friday.
Variable crop conditions in Western Canada also kept values supported.
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“We’ve still got some areas trying to finish seeding over the next week, and still have some areas that are very, very dry,” Ball said.
Advances in the front July contract were tempered by weakness in the CBOT soy oil market and overnight losses in Malaysian palm oil.
A weaker technical bias also limited gains, and could pressure values in coming sessions.
Around 14,199 canola contracts traded on Wednesday, which compares with Tuesday when around 19,472 contracts changed hands.
Spreading accounted for 9,558 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up two to seven cents per bushel on Wednesday, as forecasts calling for hot and dry weather across much of the Midwest over the next week provided support.
The weather worries encouraged speculative short-covering, which contributed to the gains.
However, ideas that US soybean acres will end up above earlier forecasts remained bearish. The large South American crops also continue to overhang the market.
The USDA releases its latest monthly supply/demand report on Friday, and positioning ahead of the data was a feature.
SOYOIL futures posted small losses on Wednesday.
SOYMEAL futures were up on Wednesday.
CORN futures in Chicago were up by four to seven cents per bushel on Wednesday, as Midwestern weather concerns provided support.
The hot and dry weather at this early stage of development could cut into the yield potential at harvest time, encouraging investors to back out of some of their short positions.
WHEAT futures in Chicago were up by nine cents per bushel on Wednesday, also boosted by speculative short-covering and weather concerns.
However, some of the dry spring wheat growing regions received beneficial moisture overnight and there is more precipitation in the forecasts. As a result, Minneapolis spring wheat futures were down slightly on the day as the wheat spreads narrowed in.
