By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Oct. 13 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Thursday, hitting their highest levels in three months on the back of weather concerns and speculative buying.
Recent snow, wet fields, and cold temperatures have left roughly 20 per cent of the country’s canola crop un harvested, and the uncertainty over yield and quality provided the catalyst for the move higher, according to participants.
A turn higher in Chicago Board of Trade soybeans provided further support, although canola was outpacing its US counterpart to the upside.
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However, CBOT soyoil was softer for most of the day, which tempered the advances.
A stronger tone in the Canadian dollar was also bearish for canola.
About 62,363 canola contracts were traded on Thursday, which compares with Wednesday when 32,690 contracts changed hands. Spreading accounted for 40,760 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed nine to 11 cents per bushel higher, as the United States Department of Agriculture expects stronger exports than previously projected.
Reports of strong private sales added to the advances.
Investor covering was also a feature on Thursday.
However, the USDA expects larger global carryout, which limited advances.
SOYOIL prices were slightly higher on Thursday.
SOYMEAL closed stronger on Thursday.
CORN futures were 10 to 12 cents per bushel higher on Thursday, underpinned by strong demand.
Advances in the crude oil market were also bullish for values.
However, favourable harvest weather in the US Midwest capped gains.
WHEAT closed 17 to 19 cents per bushel stronger on Thursday, propped up by investor short covering.
Ideas that demand for US wheat is strong, due to production issues elsewhere, added to the gains.
Spillover support from soybeans and corn was also a feature.
– Saudi Arabia has put out a tender for 595,000 metric tonnes of hard wheat, market watchers say.
– Jordan has purchased 100,000 metric tonnes of hard wheat, likely from the Black Sea region, analysts say.
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