WINNIPEG – The ICE Futures Canada canola market ended slightly higher after a day of very choppy, quiet activity on Thursday.
Some of the advances were linked to a sharply lower Canadian dollar, as it made canola more attractive to crushers and exporters.
Slow farmer selling was also supportive, as they focus on spring field work and preparing for the upcoming growing season, brokers said.
Concerns about tight supplies of canola, as recent acreage and stocks estimates have come in below expectations, were also bullish.
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However, some spillover pressure came from the declines seen in Chicago soybean and soyoil futures.
Generally good conditions for spring seeding in North
America and the large global oilseed supply situation were also bearish.
About 9,291 contracts traded on Thursday, which compares with Wednesday when 15,387 contracts changed hands. Spreading accounted for 2,072 of the trades.
Milling wheat, durum and barley futures were all untraded. Though, the Exchange moved prices for wheat lower after Thursday’s close.
CORN futures on the Chicago Board of Trade ended three to five cents per bushel lower Thursday on forecasts of favourable weather for the US crop. By last Sunday, more than half of the corn crop had been put into the ground.
Argentina is expected to produce a 25 million tonne corn crop this year which was bearish for values, according to a report.
However, the US Environmental Protection Agency is lobbying the American government for enhanced blending targets for fuels. This has the potential to open up markets for US corn-based ethanol, which was supportive for prices.
SOYBEANS finished three to eight cents per bushel weaker due to favourable growing conditions in the US and large world supplies.
The weather has been supportive for the crop in South American too, which was bearish.
However, a new report from the USDA said a sharp increase in soybean orders had come in since the previous week indicating demand was rising.
SOYOIL futures in Chicago ended 43 points lower on the day.
SOYMEAL futures ended slightly higher.
WHEAT futures in Chicago corrected five to seven cents per bushel lower after reaping their biggest gains in over a month Wednesday.
Export figures from the USDA showed cancellations of some orders. Demand for US wheat was already slow before this happened.
Participants on the Wheat Quality Council wheat tour found crops with average yields of 34.5 bushels an acre in western Kansas and northern Oklahoma. That is better than last year’s total of 30.8 bushels an acre.
• A new report says the introduction of Paraguayan wheat into Brazil has helped make Brazil’s domestic wheat prices more stable.
• Since the beginning of the year Ukrainian sea ports have reportedly handled 10.3 million tonnes of grain. This compares to 10.7 million tonnes for the same time last year, a decrease of 4%.
• Unprecedented rains during this year’s monsoon season could cause India to return to being a net importer of wheat, a trader said.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
