By Dave Sims, Commodity News Service Canada
Winnipeg, June 22 (CNS Canada) – Canola contracts on the ICE Futures Canada platform finished higher to end the week, taking advantage of a rebound in soybean and soyoil prices.
Some parts of Western Canada could use more rain, which lent support to prices.
The Canadian dollar continues to linger around the 75 U.S. cent mark, which bolstered futures.
Farmers are sitting on old crop supplies in search of better prices.
However, funds are on the short side and speculators were hesitant to make big purchases right now.
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“Because if you buy beans; one tweet from Donald Trump and you could be down 30 cents,” said a trader in Winnipeg.
About 25,282 canola contracts traded, which compares with Thursday when 18,712 contracts changed hands. Spreading accounted for 13,052 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The market turned higher with speculative buying while some large funds went bargain hunting before the weekend.
The basis in the United States remains firm and old crop exports are slow.
While China isn’t buying U.S. soybeans right now, other countries are beginning to fill the gap due to the current low prices.
Corn futures were relatively unchanged in sideways trade.
The market was chopping around for much of the day. On one hand, fears over a global trade war limited investors’ appetites. On the other, extreme dryness in Brazil has cut into the country’s crop production, prompting some buyers to pick up U.S. supplies now.
There are ideas U.S. ethanol exports to China could be cancelled.
Chicago wheat futures ended weaker Friday in technical selling.
Rain is expected in Kansas and other portions of the eastern Midwest, which was bearish for prices.
However, the expected drop in Russian wheat production lent support to U.S. prices. Production is forecast to fall to 67.4 million tonnes this year. If that prediction holds true it would be 21.5 percent lower than last year’s harvest.
