By Terryn Shiells and Jade Markus, Commodity News Service Canada
Winnipeg, July 30 – Canola contracts on the ICE Futures Canada trading platform ended higher on Thursday, underpinned by rumours that China made a fresh purchase of Canadian canola earlier this week, analysts said.
Weakness in the Canadian currency, strength in Chicago soybeans and worries about tight Canadian canola supplies added to the bullish tone.
Concerns about thunderstorms that brought heavy rain, hail and strong winds damaging crops in parts of Western Canada further underpinned values.
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Though, weather conditions have improved enough in other regions of the Prairies to stabilize canola fields, which was bearish.
The large global oilseed supply situation was also overhanging the market.
The November contract did break above the key C$500 per tonne level earlier in the day, but failed to settle above it, which could lead to some fund selling in Friday’s session, according to a broker.
About 13,760 contracts traded on Thursday, which compares with Wednesday when 12,915 contracts changed hands. Spreading accounted for 4,816 of the trades.
Milling wheat, barley and durum futures were untraded, though the Exchange moved wheat prices slightly lower after Thursday’s close.
SOYBEAN futures at the Chicago Board of Trade closed two to seven cents per bushel stronger on Thursday as a US export report supported prices.
Numbers from the US Department of Agriculture’s weekly export report week ending July 23 were better than analysts had expected, which is bullish.
Market watchers say earlier declines in soybean prices made the crop more appealing to buyers, adding to the current bullish tone.
CORN futures closed four to five cents per bushel higher on Thursday, as analysts say demand for feed and ethanol are high, which is bullish.
Additionally, traders say corn may be on a technical bounce after steep falls earlier this month.
However, traders say heavy rains in the US Corn Belt in June and July may not have had as much of a negative effect as anticipated, a healthy harvest may be in the future, which could have a bearish effect on prices in weeks to come.
WHEAT futures in Chicago closed one cent per bushel higher to two cents per bushel lower on Thursday, likely on a technical bounce as the commodity faces a number of bearish factors.
A US wheat quality tour moving through North Dakota has seen healthy conditions on both days of its tour so far, indicating a big harvest, which is bearish.
A number of Asian countries have bought close to three-million tonnes of Black Sea feed wheat, analysts say, which could reduce demand for the US crop.
• Wheat growers in Australia face the risk of low yields this growing year due to dryness.
• Wheat export sales in the US totalled 699.4-thousand metric tonnes during the week ended July 23, according to the USDA.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
