By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 6 (CNS) – The ICE Futures Canada canola market continued to trend higher on Thursday, fueled by concerns about what the present hot temperatures could mean for the flowering canola crop.
“There are moisture concerns in Alberta and parts of Southern Saskatchewan,” said a trader in Winnipeg.
Advances in Malaysian palm oil were bullish for canola.
Speculative buying was also a feature, according to the trader.
“Certainly we may be seeing some farmers buying contracts back because guys are nervous,” he said.
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Tightness in Canadian canola stocks helped prop up values.
However, weakness in US soyoil was bearish for canola.
Exports are sluggish right now, the trader said.
About 25,200 canola contracts traded on Thursday, which compares with Wednesday when 28,600 contracts changed hands. Spreading accounted for 7,726 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 two to four cents per bushel on Thursday, as declining US condition ratings provided support.
The US soybean crop was rated 64 per cent good-to-excellent in the latest weekly USDA report, which was down two points from the previous week.
Nearby forecasts calling for continued heat and dryness across the Midwest added to the firmer tone.
However, losses in wheat and corn spilled over to put some pressure on soybeans amid ideas that the gains are getting overdone.
SOYOIL futures were lower on Thursday, as spreading against soymeal weighed on values.
SOYMEAL futures settled higher on Thursday.
CORN futures in Chicago were down by one to two cents on Thursday, seeing a modest correction following recent advances.
US corn in the good-to-excellent category was raised one percentage point, to 68 per cent, in the latest weekly report. That came as a surprise to market participants who had expected to see a slight downgrade.
Sharp losses in wheat also weighed on prices.
However, hot temperatures in the forecasts provided some underlying support.
WHEAT futures in Chicago were down by 10 to 21 cents per bushel on Thursday, as traders took profits on the recent rally.
The losses in wheat came despite continued concerns over the state of the US spring wheat crop, which saw its ratings decline to only 37 per cent good-to-excellent in the latest weekly report.
Conditions remain hot and dry in the key spring wheat regions of the US, which should lead to further downgrades.
However, the advancing US winter wheat harvest was somewhat bearish at 53 per cent complete.
