By Dave Sims, Commodity News Service Canada
Winnipeg, March 21 (CNS Canada) – The ICE Futures Canada canola complex finished higher on Wednesday, taking strength from gains in U.S. soyoil.
Speculative buying and slight gains in U.S. soybeans were also supportive for the market.
Recent exports of both old crop and new crop were bullish for canola, according to a trader in Winnipeg.
Slow farmer selling added to the upside.
However, the Canadian dollar was higher, relative to its U.S. counterpart, which made canola less attractive to foreign buyers.
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There are ideas canola acres will increase across Western Canada this spring.
Around 13,012 canola contracts were traded on Wednesday, which compares with Tuesday when around 12,717 contracts changed hands. Spreading accounted for 7,534 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market eked out tiny gains on Wednesday, in tight technical trade.
There seems to be a bit of uncertainty over how big Argentina’s crop will turn out to be. Right now most estimates range from 40 to 44 million tonnes.
Rising palm oil production out of Malaysia was bearish for values.
Corn futures finished within a narrow margin on either side of unchanged.
The latest estimate for corn acreage in the United States this spring is 88.5 million acres, which is about a million and a half acres lower than the previous estimate.
More rain and snow is expected to fall on the U.S. Plains this week, which should improve soil moisture.
Chicago wheat futures finished slightly lower on Wednesday.
It looks like the next seven days will also see dry weather across the U.S. Southern Plains. Some rain was initially expected to land in Kansas but it now looks like it will miss the state.
Traders are already focused on the USDA’s planting intentions report, which is set to come out next week.
