By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, July 24 – ICE Futures Canada canola contracts moved higher on Thursday, following the gains seen in Chicago soybean futures, analysts said.
Steady demand from end-users, paired with only light farmer selling, was also supportive for canola.
Ongoing worries about flood damage in parts of Western Canada and sentiment that recent losses were overdone were also bullish.
However, forecasts calling for beneficial rainfall across the Canadian Prairies this weekend helped to limit the advances.
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Weakness in European rapeseed futures and expectations of a very large 2014/15 US soybean crop were also bearish.
About 13,448 contracts traded on Thursday, which compares with Wednesday when 20,233 contracts changed hands. Spreading made up the bulk of the activity, accounting for 11,002 of the trades.
Milling wheat, durum and barley futures were untraded, though the Exchange made small adjustments to wheat prices after Thursday’s close.
SOYBEAN futures at the Chicago Board of Trade ended six to nine cents higher Thursday, as speculative traders bought futures on signs of improving demand for US supplies.
Speculation is also growing that warm, dry weather in August will curb yields.
According to the USDA, exporters sold 226,700 metric tonnes of soybeans for the season ending August 31.
Soybean premiums at the Gulf are growing due to high freight costs and export demand, according to a report.
SOYOIL futures were up following soybeans and on underlying weakness in Malaysian palm oil futures, traders said.
SOYMEAL futures were higher, following soybeans.
CORN futures in Chicago fell slightly lower Thursday as pristine weather conditions continued to shine on the US Corn Belt.
Forecasts are calling for cooler-than-normal conditions, which will help US corn crops pollinate amid superb conditions, an analyst said.
Demand for ethanol is improving and signs of underlying strength are emerging in the cattle feed sector.
European Union (EU) corn supplies could be poorer in quality than initially thought, an analyst said, which could reduce the EU’s imports.
Wheat futures in Chicago ended two to six cents lower on signs of weak demand for US supplies. Last week, exporters sold 443,200 metric tonnes of wheat for delivery in the current season, according to the USDA. This is down 27% from the same timeframe last year.
Reports of excess precipitation in Europe, and fears it is affecting wheat quality and yields over there, helped limit the downside.
Despite turmoil in eastern Ukraine, wheat shipments from the Black Sea region continue to move steadily, according to a report.
• New sanctions against Russia could result in a large amount of wheat being poured onto the global market, according to a report. The fear is Russian exporters may flood the market if they think sanctions will restrict their movement.
• Concerns over the quality of French wheat have triggered purchases of wheat from Poland including a 25,000 tonne sale this week, according to a report.
• Egypt is reportedly buying less wheat from Romania because Ukraine and Russia are offering lower prices.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
