By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG – The ICE Futures Canada canola market ended higher on Thursday, following Chicago soyoil futures amid light, choppy activity.
Traders were said to be evening positions ahead of the long weekend, as both Canadian and US markets are closed for Good Friday on April 3.
The need to keep a weather premium in the market ahead of spring seeding provided some underlying support, analysts said.
Though, some downward pressure came from the upswing in the value of the Canadian dollar, as it made canola more expensive on the international market.
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Canola values stayed within a narrow trading range due a lack of fund activity on either side, brokers said. Farmer selling and exporter pricing were also on the slow side.
About 17,301 contracts traded on Thursday, which compares with Wednesday when 18,989 contracts changed hands. Spreading was a feature, accounting for 12,522 of the trades.
Milling wheat, durum and barley futures were all untraded and unchanged.
CORN futures in Chicago ended three to five cents per bushel higher Thursday as hedge-funds went buying before the Easter long weekend.
Ideas that US corn acreage could be smaller than the USDA’s latest projections were also bullish. Continued rainfall in the Mississippi Delta has delayed planting efforts and could be persuading some farmers to plant soybeans instead, according to reports.
Spillover support also came from the wheat market, participants said.
SOYBEAN futures in Chicago finished mixed Friday, with the near-term values pressured by the large ongoing South American harvest while the more deferred contracts were boosted on ideas of future demand.
Poor export numbers also weighed down near-term values with the USDA pegging last week’s sales of old crop supplies at 27,400 tonnes. That was well below analysts’ expectations of 150,000 to 300,000 tonnes.
Looking ahead to 2015/16 however, private exporters managed to sell 188,000 tonnes to unknown destinations, which was bullish.
SOYOIL futures in Chicago closed 32 to 35 points higher on the day.
SOYMEAL futures ended lower, with spreading against soyoil a feature.
WHEAT futures in Chicago finished five to eight cents per bushel higher Thursday and nine to 10 cents per bushel higher on the Kansas City Board of Trade. Investors were covering their short positions due to dry conditions in the US Great Plains. There are fears the dryness could curb output of the hard-red winter wheat crop.
However, lukewarm export numbers from the USDA reinforced ideas that US wheat is still too expensive on the international market, according to a report.
Showers are forecast to fall in the US next week, but likely not enough to help the winter wheat crop in a meaningful way.
• Wheat prices will continue to stay firm in Brazil as the margin between available supplies and purchases is very tight, according to a report.
• The U.S. Environmental Protection Agency Wednesday has reportedly granted final approval of Enlist Duo herbicide for use in nine additional states.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
