By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, February 8 – THE ICE Futures Canada canola market settled mostly higher on Wednesday, taking strength from advances in US soy and vegetable oil.
Crush margins are still at a favourable level and demand is still steady, according to a trader in Winnipeg.
Gains in crude oil and slow farmer selling contributed to the upside.
Traders were also positioning themselves ahead of tomorrow’s USDA supply and demand report.
However, the Canadian dollar was stronger relative to its US counterpart, which made canola less attractive to foreign buyers.
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Some technical selling occurred in a few of the deferred contracts.
Milling wheat, barley and durum were untraded.
About 44,842 canola contracts traded on Wednesday which compares with Tuesday when 25,852 contracts changed hands. Spreading accounted for about 30,998 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up by five to sixteen cents per bushel on Wednesday, hitting their highest levels in six months as speculative buying provided support.
Weakness in the US dollar index contributed to the gains, as the softer currency makes exports more attractive to international buyers.
Solid Chinese demand helped underpin the futures as well
However, relatively favourable South American crop conditions and expectations for large crops out of the region limited the advances.
SOYOIL futures settled with higher on Wednesday.
SOYMEAL futures were stronger on Wednesday.
CORN futures in Chicago were up by one to two cents per bushel on Wednesday, as values consolidated near the 200-day moving average.
Gains in crude oil, solid end user demand, and the weaker US dollar index were also supportive.
The USDA releases its monthly supply/demand report on Thursday, and positioning ahead of the data accounted for some of the day’s activity.
WHEAT futures in Chicago were steady to up two cents per bushel on Wednesday, with speculative positioning a feature.
Warmer temperatures in parts of the US winter wheat belt provided some support, as traders are concerned that a return to seasonally cold temperatures would damage crops.
