By Dave Sims, Commodity News Service Canada
Winnipeg, May 24 (CNS Canada) – Canola contracts on the ICE Futures Canada platform finished higher on Thursday, due to strong demand and weakness in the Canadian dollar.
The Canadian dollar was roughly a third of a cent lower, relative to its American counterpart, which made canola more attractive to international buyers.
Advances in Malaysian palm oil and European rapeseed futures underpinned the futures.
Ongoing concerns over excess dryness in Western Canada also buoyed the market.
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However, losses in U.S. soybeans dragged on values.
The July contract ran into technical resistance at the C$540 per tonne mark.
Around 21,632 canola contracts were traded on Thursday, which compares with Wednesday when around 13,252 contracts changed hands. Spreading accounted for 7,174 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures corrected lower on Thursday, after four straight sessions of gains.
Traders were covering shorts while technical selling was a feature of the day.
A truckers’ strike continues in Brazil and some grain ports in Argentina suffered slowdowns today, also due to striking workers.
Corn futures fell on Thursday as traders took profits.
China sold nearly three million tonnes of corn from its state reserve, which weighed on values.
Fund buying helped limit the losses though and the dominant July contract received some technical support at the US$4.00 per bushel level.
Chicago wheat finished roughly one cent weaker in technical trading.
India announced it was raising its import duty on wheat from 20 per cent to 30 per cent, which was bad news for U.S. exporters.
The U.S. winter wheat harvest is expected to begin soon in southern Texas.
