By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 26 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Wednesday, as a rally in Chicago Board of Trade soybeans spilled over to provide support.
Ongoing harvest delays in parts of Western Canada, and the uncertainty over how much of the crop may be left to overwinter, added to the gains in canola, according to participants.
Supportive chart signals contributed to the gains, although some profit-taking came forward at the highs.
In addition, losses in CBOT soyoil, large US production, and relatively favourable South American crop conditions all served to limit the advances to some extent.
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About 38,447 canola contracts were traded on Wednesday, which compares with Tuesday when 42,704 contracts changed hands. Spreading was a feature, accounting for 28,002 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade were up by seven to 19 cents per bushel on Wednesday, with solid export demand providing the catalyst for a rally.
China continues to make large purchases of US soybeans, with the USDA confirming sales of over 500,000 tonnes on Tuesday.
Supportive chart signals contributed to the gains, as prices climbed to fresh two month highs.
Midwestern rainfall may also be causing some harvest delays, which provided further support.
However, any delays will likely be minor and the large crop projections overall remained bearish in the background.
Relatively favourable seeding weather in South America also helped slow the upward move.
SOYOIL futures were down on Wednesday.
SOYMEAL futures were up on Wednesday, following soybeans.
CORN futures in Chicago were up by three to four cents per bushel on Wednesday.
The advances in soybeans provided some spillover support for corn, while the rain related harvest delays were also underpinning the futures.
However, just as in beans, the large US crop expectations put some pressure on values.
WHEAT futures in Chicago were up by five to seven cents per bushel on Wednesday.
Fund traders holding very large net short positions in Chicago wheat were buying some of those positions back, according to participants.
Ideas that US winter wheat acres will be down on the year also provided support.
However, ample world supplies and the fact that the US continues to miss out on export opportunities did limit the gains.
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