By Dave Sims, Commodity News Service Canada
Winnipeg, July 5 (CNS Canada) – Canola contracts on the ICE Futures Canada platform posted mild gains in light trade on Thursday.
Traders were taking safe positions ahead of tomorrow’s deadline by China to impose tariffs on imports of soybeans from the United States. There are ideas China has already started buying canola to help pick up some of the shortfall anticipated by the implementation of the penalties.
Some parts of Western Canada continue to battle dryness problems, which underpinned the futures.
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The November contract enjoyed some technical support.
However, losses in Chicago Board of Trade soybeans and soyoil were bearish for the market.
Oilseeds crops throughout North America are generally progressing ahead of schedule.
About 12,293 canola contracts traded, which compares with Wednesday when 8,263 contracts changed hands. Spreading accounted for 4,304 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade finished lower Thursday as traders took positions ahead of Friday.
That’s when China is scheduled to impose tariffs on imports of soybeans from the United States. The news has caused uncertainty throughout the market. Some sales are expected to be cancelled, which will be confirmed tomorrow shortly after markets open.
Weather conditions in the U.S. Plains are generally favourable over the next few days, which pressured prices.
New data from Brazil’s trade ministry showed the country’s June soybean exports rose 13.3 per cent over the same time last year.
Corn futures ended relatively unchanged in choppy, technical trade.
A slowdown in ethanol production was bearish for the market.
The U.S. Corn Belt is expected to be hot and dry over the next week and a half, which was supportive.
According to the USDA, South Korea bought 137,000 tonnes of corn from U.S. companies.
Chicago wheat futures recorded sharp gains on Thursday. The market was still taking strength from weather problems in Russia and other parts of Europe that have lowered production forecasts for many countries.
Heavy rains in Nebraska have delayed the harvest.
Some traders were squaring positions, which was bullish.
