By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Dec. 3 – ICE Futures Canada canola contracts were stronger on Thursday, as speculative short-covering gave the market a boost.
Fund traders were noted buyers, covering some of their net short positions as they squared positions ahead of Friday’s Statistics Canada production report, according to participants.
While general expectations are for an upward revision to the canola production number from the previous estimate, the extent of any revisions remains to be seen.
The combination of a weaker Canadian dollar and rising CBOT soyoil prices was also beneficial for crush margins, and domestic processors were thought to be showing some good demand, traders added.
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About 33,266 canola contracts were traded on Thursday, which compares with Wednesday when 43,235 contracts changed hands. Spreading accounted for 21,770 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed five to five and a half cents per bushel higher on Thursday, as losses in the US dollar supported prices.
The dollar fell against the euro and several other international currencies as the European Central Bank agreed on policy changes to introduce economic stimulus.
The ECB will be introducing policies on deposit rates and asset purchases.
However, the expectation that Argentina has a large amount of soybean stocks to work through capped gains.
SOYOIL prices settled stronger on Thursday, tracking Malaysian palm oil.
SOYMEAL closed stronger on Thursday, following nearby grain and oilseed markets.
CORN futures closed six to near seven cents per bushel stronger on Thursday, gathering support from gains in the nearby wheat market.
A weaker US dollar was also bullish.
However, a sales report from the United States Department of Agriculture (USDA) capped gains.
According to the USDA, corn exports for the week ended November 26 totalled 499,400 metric tonnes, which was below what most traders expected.
WHEAT closed nine and a half to twelve and a half cents per bushel stronger on Thursday, buoyed by a weaker dollar, especially as the commodity has been struggling with a lack of demand.
A weaker greenback makes US wheat cheaper to foreign buyers and increases the likelihood of exports.
Market watchers say investor short covering was also a feature on Thursday.
– Weekly export sales from the US were 392,200 metric tonnes, according to the USDA’s most recent export report.
– Russia will honour wheat commitments made to Turkey before one of their planes was shot down, according to reports, but will not be accepting new orders.
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