By Dave Sims, Commodity News Service Canada
Winnipeg, June 20 (CNS Canada) – Canola contracts on the ICE Futures Canada platform finished higher Wednesday, propped up by sharp gains in Chicago Board of Trade soyoil.
Weakness in the Canadian dollar and slow farmer selling was supportive for the market.
There are rumours China began buying more canola over the past few days as a result of its trade trouble with the United States.
However, all the volatility with U.S. trade policy, capped the upside.
Read Also
ICE canola up at midday Friday
Glacier FarmMedia — The ICE Futures canola market was stronger at midday Friday, finding spillover support from advances in Chicago…
Technical trading was a feature of the day.
“The liquidation continues in the July contract and the open interest is coming down,” said a trader in Winnipeg.
About 24,122 canola contracts traded, which compares with Tuesday when 31,027 contracts changed hands. Spreading accounted for
12,050 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures were little changed when the bell rang to end the Wednesday trading session. The market seems to have stabilized following yesterday’s selloff.
China is apparently preparing to buy soybeans from Paraguay and Uruguay in addition to Brazil as it struggles to find oilseeds outside of the United States.
More rain is expected to fall in the Midwest, which was bearish.
Corn futures chopped around in technical trade Wednesday.
According to the Energy Information Administration, ethanol stocks in the U.S. fell by 527,000 barrels during the week ended June 15, to 21.647 million barrels. That was down 3.1 per cent compared to the same week last year.
Excess dryness has cut into Ukraine’s corn exports. The country shipped out 17.4 million tonnes of corn in the 2017/18 marketing year, down 13 per cent from the previous year.
Chicago wheat futures finished stronger with technical trading.
Rain in Kansas has slowed down the winter wheat harvest there.
The condition of the U.S. spring wheat crop is improving, which was bearish.
