By Terryn Shiells, Commodity News Service Canada
WINNIPEG, May 27 – The ICE Futures Canada canola market ended firmer on Wednesday, finding support from a softer Canadian dollar, as it made canola more attractive to crushers and exporters.
Concerns about dry weather causing damage to some canola crops in Western Canada added to the bullish tone, analysts said.
Slow farmer selling, uncertainty about how many canola acres will be planted this spring, and tight supply worries were also underpinning the market.
However, weakness in the Chicago soy complex limited the gains, as did the large global oilseed supply situation.
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Canola was also testing resistance on the charts, with the July contract briefly breaking just above the psychological C$470 per tonne level during the session.
About 22,260 contracts traded on Wednesday, which compares with Tuesday when 23,018 contracts changed hands.
Milling wheat, durum and barley futures were all untraded. Though, the Exchange moved wheat prices lower after Wednesday’s close to reflect weakness in the US futures.
Chicago soybean futures were up slightly after a day of choppy activity on Wednesday, with values finishing steady to five cents US per bushel higher.
The need to keep weather premiums in the market until spring seeding is closer to completion was supportive. Seeding was 61 per cent complete as of Sunday, May 24, according to the USDA.
Concerns about possible supply movement disruptions in South America were also bullish, traders said.
Though, generally good weather conditions for the US soybean crop and the large global supply situation limited the advances.
SOYOIL futures moved lower on Wednesday, undermined by profit taking on recent gains.
SOYMEAL futures ended stronger, with spreading against soyoil a feature of the activity, market watchers said.
CORN futures in Chicago finished five to seven cents US per bushel lower on Wednesday, taking some direction from the softer wheat market.
Good weather for the developing US corn crop and news that 92 per cent of intended acres are now in the ground added to the bearish tone.
The declines were also linked to news that 74 per cent of the US corn crop is in good to excellent condition, participants added.
WHEAT futures at the Chicago Board of Trade closed five to nine cents US per bushel lower on Wednesday. Follow-through selling on Tuesday’s losses was behind the price softness, as was a strengthening US dollar index.
Reports that recent excess moisture didn’t hurt US winter wheat crops as much as first expected added to the bearish tone. The USDA said crop conditions for winter wheat held steady during the week ended Sunday.
Generally favourable growing conditions for wheat crops in Russia, Europe and Ukraine further undermined values, brokers said.
• The US spring wheat crop is 96 per cent seeded, with emergence at 80 per cent, according to the USDA. Conditions improved to 69 per cent good to excellent, from 65 per cent the week prior.
• The European Union’s soft wheat yield estimates for this year were upped by MARS, a crop monitoring service, reports say.
• Officials in Russia say wheat production could drop up to 20 per cent if they don’t see some rainfall soon, though precipitation is in the forecast for later in the week.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
