By Phil Franz-Warkentin and Dave Sims, Commodity News Service
Winnipeg, Sept. 24 – ICE Futures Canada canola contracts were stronger on Thursday, hitting their best levels in over a week as gains in soyoil, weakness in the Canadian dollar, and solid end user buying were all supportive.
Fresh export demand was behind some of the strength in the market, according to a broker, with improving domestic crush margins also said to be generating some interest from local processors.
While farmer deliveries are picking up into the cash pipeline, a broker said the nearby demand was still strong enough to limit the harvest pressure for the time being.
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By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Thursday, in gleaning support…
However, with the canola harvest close to half done and yields generally beating expectations, the upside was limited.
Ideas that canola is looking overpriced compared to other
oilseeds also put some pressure on values.
About 22,720 canola contracts were traded on Thursday, which compares with Wednesday when 18,036 contracts changed hands. Spreading accounted for 12,696 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN prices continued their trend higher Thursday, rising four cents per bushel, as improving demand overseas supported prices.
The USDA reported net sales for the week ended September 17 at 1.3 million metric tonnes, which was at the higher end of trade guesses entering in.
China is expected to announce a major purchase of soybeans this week, which also underpinned the market.
SOYOIL was 65 points higher following gains in crude oil.
SOYMEAL futures ended mostly lower as spreading against soyoil dragged on prices.
WHEAT futures on the Chicago Board of Trade finished 10 cents per bushel lower, as large global supplies and weak demand weighed down values.
Net export sales data, collected by the USDA, was at the low end of traders’ expectations heading into the report.
Recent rains in the US Southern Plains have enriched the soil moisture in time for the planting of hard red winter wheat, according to a report.
CORN futures on the Chicago Board of Trade were slightly weaker Thursday, pressured by reports of better-than-expected yields in the Western Corn Belt.
Exports sales were weaker than expected. The USDA reported net sales of 426,300 metric tonnes of corn last week. Heading into the report, most traders figured at least half a million tonnes would have moved.
However, a slightly weaker US dollar helped to limit the losses.
– EU cereal production is forecast to fall by almost 7% this year as a result of poor weather and other issues, according to a report.
– Warm, dry weather has taken its toll on winter crops in Romania which are reportedly in desperate need of rain.
– China’s wheat imports rose 14% in August, compared to July.
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