By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Oct. 21 – ICE Futures Canada canola contracts were stronger on Wednesday, but off their session highs by the close.
Gains in CBOT soybeans and soyoil provided some spillover support for canola throughout the session, according to participants.
In addition, the Canadian dollar lost over three quarters of a cent relative to its US counterpart. That makes canola more competitive in the global market, while also underpinning domestic crush margins.
A correction off of nearby chart support contributed to the gains. However, canola remains rangebound overall. The November contract traded just below nearby resistance at C$480 per tonne at one point during the day, but the demand dried up at that level and selling came forward to take the market off its highs.
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About 56,383 canola contracts were traded on Wednesday, which compares with Tuesday when 49,363 contracts changed hands.
Milling wheat, durum, and barley were all untraded, although wheat was revised higher after the close.
SOYBEAN futures at the Chicago Board of Trade closed four to nine cents per bushel higher on Wednesday as markets positioned themselves ahead of Thursday’s USDA report.
The United States Department of Agriculture is slated to release its weekly export report tomorrow, which will give the market direction going forward, analysts say.
China’s renewed interest in oilseeds also supported prices and eased concerns within the market.
Unfavourable weather in Brazil further buoyed prices. If recent dryness within the country were to reduce yield it would make more room for US soybeans in global markets.
SOYOIL prices settled higher on Wednesday tracking Malaysian palm oil.
SOYMEAL closed higher on Wednesday, following nearby grain and oilseed markets.
CORN futures closed one to four cents per bushel stronger on Wednesday due to lacklustre farmer selling.
There hasn’t been much corn on the market as of late. Producers do not like current prices, analysts say, and will wait until prices improve or they run out of storage room.
The ongoing US harvest capped gains.
WHEAT closed one to three cents per bushel stronger on Wednesday, supported by dryness in competing growing regions.
A lack of rain in Australia and post-Soviet states puts crops at risk, which could reduce global supplies and make more room for US crops.
Russia is expected to get rain this week, which could cap gains in forthcoming sessions.
– Russia exported two million metric tonnes of grain, including 1.3 million metric tonnes of wheat, from October 1 to 19, according to the country’s Grain Quality Centre.
– Two separate banks in Australia have reduced their estimates for the country’s wheat crop.
END
