By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
ICE Futures Canada canola ended end stronger on Wednesday, following advances in Chicago Board of Trade soybeans and soy oil.
US markets gained with support from strong demand.
Market-speculation about the size of the upcoming crop kept a weather premium in the market, as some traders expect crop conditions may have declined due to flooding in some areas of Western Canada.
Late gains in the Canadian dollar tempered advances, as the loonie moved close to unchanged against its US counterpart by close.
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The expectation that demand from China could be weaker following a regulation change on September 1 limited advances.
About 16,836 canola contracts traded on Wednesday, which compares with Tuesday when 17,818 contracts changed hands.
Durum and barley futures were all untraded and unchanged, while milling wheat was revised higher after the close.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up by six to 11 cents per bushel on Wednesday, as solid export demand provided support.
China continues to make large purchases of US beans, which should cut into the ending stocks projections going forward.
Ideas that actual US production may not live up to last week’s USDA projections were also supportive, with flooding issues in the southern Delta region cutting into prospects there.
SOYOIL futures posted solid gains on Wednesday, with rising international demand for vegetable oil behind much of the strength.
SOYMEAL futures were steady on Wednesday, with spreading against soyoil a feature.
CORN futures in Chicago were slightly firmer on Wednesday, moving up by two to three cents per bushel after holding within a narrow range throughout the session.
Corn is stuck in a sideways trading pattern for the time being, according to analysts.
While the good US crop prospects weighed on values, any bearish sentiment was being countered by expectations for solid export demand.
WHEAT futures in Chicago were up by two to four cents per bushel on Wednesday, taking some direction from the advances in the neighbouring markets.
Production issues in Europe and a downgrade in Ukraine’s official crop estimate contributed to the firmer tone.
However, a large Russian crop and the advancing US spring wheat harvest tempered the upside.
– German wheat production will be down by 8.8 per cent on the year, hitting 24.2 million tonnes, according to the latest estimates from a German farm group. Excess rain was cited as the primary reason for the downgrade, although good export quality was still expected.
– Russia is running into storage issues, with expectations for a large wheat crop leading to concerns that there may not be a place to put it. Industry participants in the country are hopeful that the government will lift wheat export taxes, to boost domestic prices and allow more grain to leave the country.
