By Terryn Shiells, Commodity News Service Canada
WINNIPEG, April 1 – The ICE Futures Canada canola market moved higher on Wednesday, following the rally seen in Chicago soybean futures.
Further spillover support came from the gains seen in Chicago soyoil and Malaysian palm oil futures, analysts said.
Some chart-based buying, steady commercial demand and the need to keep weather premiums in the market ahead of spring seeding added to the bullish tone.
However, strength in the Canadian dollar was bearish, as it made canola more expensive on the international market.
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The large global oilseed supply situation was also limiting the gains, as South America’s soybean crop is looking good.
About 18,989 contracts traded on Wednesday, which compares with Tuesday when 18,353 contracts changed hands. Spreading was a feature, accounting for 11,116 of the trades.
Milling wheat, durum and barley futures were all untraded. Though, the Exchange moved wheat and barley prices higher after Wednesday’s close.
CORN futures in Chicago ended five to six cents per bushel higher Wednesday on ideas of good demand after tumbling 4.6 percent in Tuesday’s session.
Expectations of reduced acreage in the upcoming US growing season also supported values, a trader said.
Buyers from South Korea recently purchased just under 200,000 tonnes of US corn, adding to the bullish tone.
Some recent hog and poultry numbers show heavier-than-expected weights for many animals which has been supportive for feeding corn.
SOYBEAN futures in Chicago finished 16 to 19 cents per bushel higher Wednesday, fuelled by Tuesday’s USDA report that called for less soybean acreage this year than was initially expected.
Any delays in planting or weather issues are expected to give the soybean crop a chance at cracking the US$10 a bushel level, according to a report.
Though, producers in the Mississippi Delta are reportedly looking at planting alternatives to corn. Soybeans and sorghum appear to be the top choices, which could add to the soybean acreage moving forward.
SOYOIL futures in Chicago closed 30 points higher on the day, as strength in Malaysian palm oil futures underpinned the market.
SOYMEAL futures ended higher, following soybeans.
WHEAT futures in Chicago corrected 14 to 17 cents per bushel higher Wednesday as concerns over a lack of soil moisture in the US Great Plains helped investors recoup some of their losses from the previous session.
Portions of the US Midwest and Southern Plains are expected to receive strong winds and low humidity this week which is expected to deplete moisture supplies.
Many wheat-growing regions of Russia have experienced warm temperatures and rain which has aided crop development.
• A shortage of high quality graded what has prompted China to hit the marketplace looking for more, according to a report. China purchased a half a million tonnes of high protein wheat roughly ten days ago.
• A new European premium wheat contract has started trading but so far failed to attract much interest, according to a report by the European exchange. Euronext’s No. 3 premium wheat contract was hailed as a solution to the problems caused last year by the rain-hit harvest.
• Septoria could be a threat to crops in England this year a report says.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
