By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 8 (CNS Canada) – ICE Futures Canada canola closed stronger on Thursday, in sluggish trade.
Canola was following Chicago Board of Trade soybeans higher, though lagged those gains to the upside after strength in previous sessions.
Chicago soybeans advanced ahead of a key report from the United States Department of Agriculture due out on Friday.
Canola was also supported by a tight supply situation in Western Canada, which is bullish.
Market watchers say canola’s technical bias is to the downside, which could limit advances in coming sessions.
Read Also
Canadian Financial Close: Loonie holds steady
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar remained firm on Monday following modest increases in…
Around 18,995 canola contracts traded on Thursday, which compares with Wednesday when around 14,199 contracts changed hands. Spreading accounted for 8,480 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up three to eight cents per bushel on Thursday, as concerns over hot and dry conditions across much of the Midwest provided support and had traders covering short positions ahead of Friday’s monthly USDA supply/demand report.
Updated yield estimates for the US and production estimates for South America will be followed closely when the report is released on Friday.
Solid demand from China contributed to the gains in soybeans, although weekly US soybean export sales failed to live up to expectations.
SOYOIL futures were up sharply on Thursday.
SOYMEAL futures were up on Thursday.
CORN futures in Chicago settled within a penny of unchanged on Thursday, as the market ran into resistance after posting early gains.
While concerns over hot and dry weather conditions were supportive, the early buying slowed down amid ideas the gains were looking overdone.
Traders were also likely showing some caution ahead of Friday’s USDA report.
WHEAT futures in Chicago were up by three to five cents per bushel on Thursday, as a rally in the Minneapolis spring wheat market provided spill-over support with speculators the noted buyers.
Hot and dry weather conditions are forecast to persist across much of the key spring wheat growing regions of the country into the next week.
However, wheat ran into resistance and values settled well off their highs for the session.
