By Dave Sims, Commodity News Service Canada
Winnipeg, May 23 (CNS Canada) – The ICE Futures Canada canola market ended higher on Wednesday, due to action in the Canadian currency. The Canadian dollar was lower, relative to its U.S. counterpart, which made canola more attractive to international buyers.
Gains in the U.S. soy complex were bullish for canola.
Concerns over excess dryness in multiple areas of Western Canada were also supportive for prices.
Global demand for oilseeds remains strong.
However, expectations that this year’s canola plantings will be extremely large, capped the gains. Canola stocks are also on the large side.
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The July contract looks to be near the top end of its recently-established range.
Around 13,252 canola contracts were traded on Wednesday, which compares with Tuesday when around 12,609 contracts changed hands. Spreading accounted for 4,350 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures continued to rise on Wednesday, after rumours circulated that China bought some soybeans from the United States on Tuesday. There are ideas that an end to the China/U.S. trade dispute could be coming soon.
Planting progress is going slow in Michigan, Minnesota, Wisconsin and the two Dakotas.
A truckers strike continues in Brazil, threatening to delay shipments there.
Corn futures ended higher, taking spillover support from gains in wheat.
The crop in Brazil continues to get revised lower, which was supportive for U.S. corn prices.
Areas of drought in northern Missouri and southern Iowa are creating problems for farmers.
Chicago wheat finished stronger in technical trading on Wednesday.
Forecasts indicate more dry weather is coming to the U.S. Southern Plains next week.
Strength in the U.S. dollar was bearish for wheat exports.
