By Dave Sims, Commodity News Service Canada
Winnipeg, July 17 (CNS Canada) – Canola contracts on the ICE Futures Canada ended stronger on Tuesday, following gains in U.S. soybeans and soyoil.
Dryness continues to be an issue in parts of the Prairies while the U.S. Midwest is also heating up.
“I think there’s some bottom picking in here. U.S. conditions dropped again yesterday so things are getting too dry out there,” said a trader in Winnipeg.
Large funds were also covering shorts, which was supportive.
Read Also
ICE canola turning higher as day progresses
Glacier FarmMedia — The ICE Futures canola market was posting small gains at midday Thursday, recovering from early losses as…
Weakness in the Canadian dollar also made canola more attractive to international buyers.
However, commercial traders see little reason to bid up the market right now, which was bearish.
Profit-taking was a feature, according to the trader.
About 12,487 canola contracts traded, which compares with Monday when 14,538 contracts changed hands. Spreading accounted for 5,478 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade finished higher on Tuesday as interest grew in them because of their low price. The cost of U.S. soybeans is over 20 per cent cheaper than Brazilian beans, which has drawn a flurry of interest from countries who intend to buy them and then sell them to China.
According to the USDA, condition ratings for the soybean crop in the U.S. fell to 69 per cent good to excellent from 71 per cent last week. Hot conditions were blamed for the reduction.
The National Oilseed Processors Association pegged the U.S. crush numbers in June at 159.2 million bushels, which was a record for the month.
Corn futures ended higher with technical buying.
The weekly condition ratings for the U.S. corn crop fell three per cent last week to 72 per cent good to excellent.
Crop development is still ahead of the average though with 63 per cent of the U.S. crop considered to be in the silking stage.
Trade tensions between the U.S. and Mexico were bearish for futures.
Chicago wheat futures corrected higher after Monday’s selloff.
Harvest pressure is also starting to fade, which was supportive for wheat prices.
Weekly ratings for the spring wheat crop in the U.S. hung steady at 80 per cent good to excellent.
Spring wheat futures in Minneapolis advanced five cents on the day.
