By Phil Franz-Warkentin, MarketsFarm

WINNIPEG, May 5 (MarketsFarm) – The ICE Futures canola market was stronger on Wednesday, with the largest gains in the old crop July contract.

Tight supplies remained a key driver of the market, with speculative positioning adding to the gains. A lack of significant selling interest on the other side was also supportive.

The C$30 daily trading limit was expanded to C$45 per tonne on Wednesday, with the July contract ending C$39.50 higher at a new contract high of C$933.50 per tonne.

The new crop months lagged to the upside, some farmer hedge price targets were being hit. A firmer tone in the Canadian dollar also pressured values.

About 22,072 canola contracts traded on Wednesday, which compares with Tuesday when 21,390 contracts changed hands. Spreading accounted for 10,312 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Wednesday. Ongoing strength in world vegetable oil markets remained supportive for soybeans, while gains in corn added to the firm tone.

With spring seeding underway across the United States, the recent rally in corn has led to ideas that some intended soybean acres may shift to corn instead. Soybean supplies are also tight, and prices must keep pace with corn to make sure enough area is planted to the crop.

The U.S. Department of Agriculture releases its monthly supply/demand report on May 12 and pre-report positioning should be a feature over the next few days

CORN continued its uptrend, hitting fresh eight year highs.

Dryness concerns out of Brazil remained a key driver of the corn market, as the second corn crop there is in need of moisture and forecasts remain dry.

WHEAT futures were up in sympathy with corn and soybeans, as the rally in corn leads to increased demand for wheat from livestock feeders.
Persistent dryness concerns in the spring wheat growing regions of North America were also supportive.

The Buenos Aires Grain Exchange pegged Argentina’s wheat crop in 2021/22 at 19 million tonnes. That would be up by two million tonnes from the previous year and tied for the record largest crop in the country.