By Dave Sims, Commodity News Service Canada
Winnipeg, November 22 – The ICE Futures Canada canola market ended relatively unchanged before the U.S. Thanksgiving holiday, as traders positioned themselves prior to the break.
Gains in US soybeans helped prop up prices somewhat.
Speculative buying and gains in Malaysian palm oil and European rapeseed futures were supportive.
However, the Canadian dollar was higher relative to its U.S. counterpart, which made canola less attractive to domestic crushers and out-of-country buyers.
Losses in U.S. soyoil dragged on prices.
Around 10,017 canola contracts were traded on Wednesday, which compares with Tuesday when around 19,056 contracts changed hands. Spreading accounted for 4,768 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished seven to eight cents stronger on Wednesday, due to speculative buying. The market also took strength from large gains in soymeal.
Ideas of rising demand for U.S. export sales helped lift prices.
Concerns over dryness in Argentina were supportive and there is growing speculation La Nina will become a reality.
The corn market ended half a cent to one cent higher on Wednesday as traders squared positions before the holiday.
In South America, growing conditions have been improving as of late, which was bearish.
Farmer selling in the U.S. is slow as the basis is very weak.
The Chicago wheat market was mixed with the front-month contract two cents weaker on Wednesday.
Traders were positioning themselves ahead of the holiday and some speculators were covering shorts.
Concerns over the quality of US winter wheat was supportive.
Weakness in the U.S. dollar was supportive for wheat exporters.