By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Sept. 10 – ICE Futures Canada canola contracts were stronger on Thursday, posting gains for the third straight session as the market continued to correct off its recent lows and sellers moved to the sidelines.
Gains in CBOT soyoil, as US traders were squaring positions ahead of Friday’s USDA supply/demand report, provided some spillover support for canola as well, according to traders.
Recent weather concerns in parts of Western Canada contributed to the gains, as harvest delays and quality issues were being noted.
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However, off the combine deliveries are still expected to flood the market over the next few weeks, which limited the advances. A firmer Canadian dollar, large old crop stocks, and bearish chart signals also served to limit the upside potential.
About 22,254 canola contracts were traded on Thursday, which compares with Wednesday when 15,861 contracts changed hands.
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 closed one to two cents per bushel higher Thursday as traders anticipated the results of an upcoming report.
On Friday the USDA will release a supply and demand report, which market watchers expect will show reduced estimates for corn and soybeans.
Yields may be reduced this year due to poor weather and flooding in US growing regions, analysts say, which is bullish.
However, gains were limited as traders say this year’s production is still higher than average.
SOYOIL prices settled stronger on Thursday, following Malaysian palm oil.
SOYMEAL closed lower on Thursday. Analysts attribute the losses to a bearish abundance of meal in China.
CORN futures closed three to five cents per bushel higher Thursday, also supported by the upcoming USDA report.
WHEAT futures in Chicago closed four to six cents per bushel higher Thursday, recovering from a five-month low.
Market watchers say wheat prices could find stability at current levels, as the commodity has been turbulent due to high global supplies and cheaper prices in Europe and China.
– India has started seeding wheat, and has favourable conditions, analysts say.
– The Taiwan Flour Millers Association has pledged US$544 million over two years for US wheat exports.
