By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 5 (CNS Canada) – The ICE Futures Canada canola market recorded strong gains on widespread support Wednesday. Concerns a heat blast in many parts of the Prairies could stress the flowering canola crop underpinned the advances.
Chicago Board of Trade soybeans finished higher on the day, which lent support to prices.
The Canadian dollar was weaker, relative to its US counterpart,
which made canola more attractive to out-of-country buyers.
Tightness in commercial canola stocks underpinned the market.
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However, canola crops look reasonably healthy in Canada while soybeans are looking good in the US, which dragged down prices somewhat.
Strong soybean sales from South America capped the advances.
About 28,600 canola contracts traded on Wednesday, which compares with Tuesday when 15,524 contracts changed hands. Spreading accounted for 5,862 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up 11 to 13 cents per bushel on Wednesday, seeing some follow-through buying interest after Monday’s rally as speculators continued to cover short positions.
US markets were closed Tuesday for the Independence Day holiday.
Expectations that crop condition ratings for the US soybean crop will be down slightly in the latest weekly report, out after Wednesday’s close, added to the firmer tone in the futures.
However, soft weekly export inspections, of only 266,000 tonnes, tempered the gains.
SOYOIL futures settled near unchanged on Wednesday.
SOYMEAL futures settled higher on Wednesday.
CORN futures in Chicago were up by three to five cents per bushel on Wednesday, as expectations for declining condition ratings provided some support.
Solid weekly US corn export inspections, of just over one million tonnes, contributed to the gains, according to participants.
However, large South American supplies and forecasts calling for reasonably favourable weather across the Midwest put some pressure on values.
WHEAT futures in Chicago were up by two to six cents per bushel on Wednesday, as an early round of profit-taking proved short-lived. Minneapolis and Kansas City contracts also recovered from earlier losses to post gains.
Continued concerns over the state of the US spring wheat crop remained a key driver in the wheat market, with hot and dry weather in the key growing regions causing crop ratings to deteriorate.
Weekly US wheat export inspections came in at about 500,000 tonnes, according to the USDA.
