By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 27 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Wednesday, correcting from recent losses as supportive technical signals and solid end user demand provided support.
Prairie weather concerns added to the firmer tone, with heat and dryness causing crop stress in some areas.
However, forecasts calling for much needed rain in some of the dry regions of Saskatchewan by the weekend tempered the upside.
Statistics Canada and the United States Department of
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Glacier FarmMedia — ICE canola futures were stronger on Wednesday, taking back Tuesday’s losses as the market continued to consolidate…
About 28,670 canola contracts traded, which compares with Tuesday when 25,570 contracts changed hands. Spreading was a feature, accounting for 21,354 of the contracts traded.
SOYBEANS were steady to slightly higher on Wednesday, seeing some consolidation after settling at fresh lows on Tuesday.
Positioning ahead of Friday’s United States Department of Agriculture acreage and stocks reports was a feature, with traders reluctant to push values too far one way or the other ahead of the data.
Average pre-report guesses are for an increase in U.S. soybean seedings by about a million acres from the earlier estimate, with quarterly stocks also up from the year-ago level.
The ongoing trade war between the U.S. and China remained a bearish influence in the background, with Chinese tariffs on U.S. soybeans set to go into effect next week.
Relatively favourable Midwestern crop conditions also weighed on prices.
CORN held steady on the day, lacking any clear direction. Forecasts are calling for some hotter and drier weather across the Midwest over the next week few weeks, but conditions remain favourable overall for now.
WHEAT futures were mixed, with gains in the winter wheat markets and losses in Minneapolis spring wheat.
Chart-based speculative positioning accounted for most of the buying interest, with the nearby fundamentals still relatively bearish for wheat.
The advancing U.S. winter wheat harvest put some pressure on values, while forecasts calling for welcome rains in dry spring wheat growing regions of the northern U.S. and Canada weighed on Minneapolis prices.
