By Dave Sims, Commodity News Service Canada
Winnipeg, August 9 – THE ICE Futures Canada canola market ended higher on Wednesday, pushed up by speculative buying as traders positioned themselves ahead of tomorrow’s USDA supply and demand report.
Vegetable oil markets posted gains, which underpinned canola prices.
The technical bias is pointed higher and slow farmer selling contributed to the upside.
The southern portions of Saskatchewan and Alberta continue to deal with the effects of heat stress on the crop.
However, steady exports of soybeans from South America weighed on the market.
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Rain is also falling across parched regions of Western Canada, which was bearish.
Around 10,584 canola contracts were traded on Wednesday, which
compares with Tuesday when around 6,564 contracts changed hands. Spreading accounted for about 1,680 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans ended relatively unchanged as traders were squaring positions ahead of Thursday’s USDA supply and demand report.
Most analysts don’t expect to see any major changes made to the old crop world stocks number but US new crop numbers could be a touch lower.
Commercial buying lent mild support to the market.
Corn finished one to two cents higher in narrow trading.
There are ideas tomorrow’s report could include lower yield and production numbers for the US.
The European Union is planning to slap a new tariff on corn imports. Reports indicate it could be six dollars per tonne.
Wheat posted gains of two to three cents a bushel on Wednesday.
Weakness in the US dollar lent some support to the market along with some light buying.
There are ideas the USDA report could see a reduction in world ending stocks, which was supportive.
Rain is expected to fall on the US Southern Plains next week which would provide relief to some heat-stressed fields.
