By Dave Sims, Commodity News Service Canada
Winnipeg, September 13 – The ICE Futures Canada canola market finished stronger on Wednesday, correcting higher after yesterday’s losses and taking strength from gains in US soybeans.
Weakness in the Canadian dollar was supportive, as it made canola more attractive to domestic crushers and foreign buyers.
Crush margins have slowly improved in recent days, which may have drawn some buying interest, according to a trader.
Rain is beginning to push into Alberta, which could delay the
Drought has severely cut into this year’s canola crop in Australia.
However, harvest pressure continues to be a feature in the market and yields have been better than expected.
Around 16,825 canola contracts were traded on Wednesday, which compares with Tuesday when around 29,633 contracts changed hands. Spreading accounted for 6,718 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans finished eight to 10 cents higher on Wednesday, as traders went bargain-hunting in the wake of Tuesday’s sharp losses.
Out in the field, pod counts are lower but the USDA has indicated many of them are on the heavy side, which should help make up for the shortfall.
Investors are now keenly watching for the USDA’s quarterly grain stocks report on September 29.
Corn was mostly unchanged on Wednesday as traders waited for fresh news.
While a few commercials were out buying early the nearby trend looks to continue sideways. Some parts of the US Corn Belt could actually use a bit more heat right now.
China is preparing to auction off two million tonnes of state reserve corn this week, which will weigh on the market a bit.
Wheat ended a penny higher as traders engaged in routine, chart-based trade.
On a technical level, the market appears to be carving out a temporary bottom for itself.
The US spring wheat harvest is nearly complete.