By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Feb. 1 (CNS Canada) – ICE Futures Canada canola contracts were up on Wednesday, seeing a correction after posting losses the previous five sessions.
A rally in Chicago Board of Trade soybeans and soyoil contributed to the buying interest in canola, while a weaker tone in the Canadian dollar was also supportive.
Fund traders were noted participants, with some stops hit in the final minutes of the day.
However, expectations for a large South American soybean crop, signs of slowing export demand for canola, and ideas that Canadian farmers will plant more canola in 2017 all served to limit the upside.
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About 23,296 canola contracts were traded on Wednesday, which compares with Tuesday when 21,957 contracts changed hands. Spreading accounted for 17,296 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although some prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed about 12 cents per bushel higher on Wednesday, underpinned by weather in South America.
Rain in Argentina is expected to support crops, but some previously flooded areas may receive too much moisture, which is bullish.
Forecasts for rain in Brazil could slow harvest progress, market watchers say, which further supported prices.
Spill-over strength from the nearby soyoil market added to the upside.
SOYOIL prices closed higher on Wednesday.
SOYMEAL closed stronger on Wednesday.
CORN futures advanced about seven to nine cents per bushel on Wednesday, supported by reports of stressed crops in Argentina.
Shipments of corn from Brazil are much slower than average, analysts say, which further underpinned the market.
Strong demand for US corn added to the bullish tone.
WHEAT closed 10 to 13 cents per bushel stronger on Wednesday, supported by demand for high quality wheat.
General strength in the Russian ruble helps US grains with international competitiveness, which also propped up prices.
