By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
Winnipeg, Feb. 15 (CNS Canada) – ICE Futures Canada canola contracts strengthened on Wednesday, as a rally in Chicago Board of Trade soybeans provided spillover support.
Better-than-expected usage numbers in the latest US crush data from the National Oilseed Processors Association (NOPA) gave soybeans a boost, which spilled into canola, said participants.
Ideas that losses posted earlier in the week were overdone contributed to the buying interest, as the general technical signals remain pointed higher.
Read Also
Canadian Financial Close: Loonie, TSX rise ahead of Labour Day
Glacier FarmMedia — The Canadian dollar ended the week with its highest close in a month. The loonie closed at…
However, the larger-than-expected US soybean crush in January also meant that soyoil stocks beat expectations, and the softer tone in soyoil put some pressure on canola.
The large South American crop prospects also kept some caution in the futures, according to traders.
About 21,966 canola contracts were traded on Wednesday, which compares with Tuesday when 25,291 contracts changed hands.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade climbed 12 to 16 cents per bushel on technical buying and a bullish crush report that showed US crush numbers at levels higher than expected.
Soybeans took strength from heavy interest in soymeal, a trader said.
US exports have generally exceeded expectations, which added to the upside.
SOYOIL futures fell 19 to 20 points on Wednesday.
SOYMEAL futures ended higher with strong commercial buying.
CORN futures in Chicago finished three to four cents per bushel stronger Wednesday due to chart-based buying and spillover gains from soybeans.
Ideas that scattered incidents of flooding could happen in Argentina again due to forecasts calling for rain were supportive.
On the other side, rising stockpiles of ethanol were bearish for the market.
WHEAT futures in Chicago rose four to five cents per bushel on Wednesday, taking support from gains in corn and soybeans.
Cold weather in parts of Europe and the Black Sea region has raised concerns over winterkill.
On the other side, Australia’s harvest is expected to hit a record 35 million tonnes, which undermined prices.
