By Dave Sims, Commodity News Service Canada
Winnipeg, August 28 (CNS Canada) – The ICE Futures canola market ended higher on Wednesday, taking strength from advances in soybeans and some speculative buying.
The market was bouncing around in choppy trading for much of the morning as harvest pressure is beginning to ramp up.
On Friday, Statistics Canada will release its crop production estimates, prompting some traders to take early positions.
Demand for canola is fairly strong but uncertainty about the NAFTA deal between Canada and the United States threw some caution into the market.
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The front-month November contract felt some technical pressure at the C$490 per tonne mark, but managed to settle above it.
About 14,996 canola contracts traded, which compares with Tuesday when just 13,283 contracts changed hands. Spreading accounted for 4,024 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended slightly higher in speculative trading Wednesday.
A survey by Farm Futures suggested farmers in the United States will plant 87.5 million acres of soybeans in 2019. However, there are ideas that number could rise due to the government aid package provided to farmers from the U.S. government.
On the other side, the market was still feeling some pressure from last week’s ProFarmer crop tour which pegged the U.S. yield at 53 bushels an acre.
The corn market recorded slight gains in choppy trading. It was just the second time in nine days the market posted gains.
Technical buying lent strength to futures.
Demand for U.S. supplies remains steady and corn took strength from the sharp gains in wheat.
Chicago wheat futures corrected sharply higher in the wake of this week’s sharp losses.
Fund buying was a main feature of the bullish activity.
Farm Futures estimates that U.S. producers will plant 33.6 million acres of winter wheat in 2019.
