By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, June 25 – ICE Futures Canada canola contracts were up again on Thursday, rising to levels not seen in nearly two years.
Forecasts calling for hot temperatures and little chance of moisture in the dry areas of Alberta and Saskatchewan over the next week accounted for much of the buying interest in canola, according to participants.
Gains in CBOT soybeans provided spillover support as well, with concerns mounting in the Midwest over unseeded acres and yield losses due to excess moisture.
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Speculative buying was a feature in canola, with some stops hit on the way up.
While the rally was drawing in some farmer selling, most producers remain on the sidelines as they are still waiting to get a better perspective on just how much canola they will have to market this year, said participants.
About 19,035 canola contracts were traded on Thursday, which compares with Wednesday when 23,015 contracts changed hands. Spreading accounted for 10,426 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed 13 to 21 cents per bushel stronger on Thursday as weather forecasts predict even more rainfall next week in the US Midwest.
Soil in the Midwest is already saturated, crop conditions are deteriorating, and planting has been stalled, which is bullish, analysts say.
Investor short-covering in light of Wednesday’s weaker close also supported soybean prices.
Traders are looking toward a June 30 US acreage report for indications on where the market is heading.
SOYOIL settled higher on Thursday, following Malaysian palm oil prices.
SOYMEAL prices settled stronger on Thursday, following soybean futures.
CORN futures closed 9 to eleven cents per bushel higher on Thursday amid reports of more rain in the US farm belt, traders say.
Reports that corn isn’t planted to the levels market watchers originally thought also provided support for prices.
Like soybeans, corn futures are hinged on the upcoming acreage report, analysts say.
WHEAT futures in Chicago closed 10 to fourteen cents per bushel higher on Thursday as dry weather and heat in Europe and Canada, particularly Saskatchewan raises concerns for farmers, according to analysts.
Market watchers say global grain supplies may not be as large as traders previously expected, which is bullish.
Wheat crops in the US Midwest are still at risk for disease from wet weather in growing regions.
Settlement prices are in Canadian dollars per metric ton.
