By Phil Franz-Warkentin and Dave Sims, Commodity News Service
Winnipeg, Sept. 23 – ICE Futures Canada canola contracts were stronger on Wednesday, as gains in CBOT soyoil and solid end user demand provided some support.
Line companies and domestic crushers were both said to be showing good demand in the cash market, as they work to fill orders and encourage more farmer deliveries.
Speculative short covering contributed to the gains, according to participants.
However, canola finished well off its highs for the session as rising production prospects and the advancing harvest weighed on prices.
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About 18,036 canola contracts were traded on Wednesday, which compares with Tuesday when 12,602 contracts changed hands.
Milling wheat, durum, and barley were all untraded.
SOYBEAN prices ended slightly higher Wednesday, as investors cashed in their short positions betting that prices would fall, according to a report.
The strength of the US dollar and the weakness of the Brazilian real are making it hard for US exporters to move supplies. Farmers in Brazil are also doing their best to cash in on the favourable exchange rate.
The soybean harvest continues to advance across the US.
SOYOIL was 20 points higher finding strength in Malaysian palm oil, and to a lesser extent, European rapeseed futures.
SOYMEAL futures ended slightly lower as spreading against soyoil weighed on prices.
CORN futures on the Chicago Board of Trade recorded modest gains of two cents per bushel on Wednesday, pushed higher by ideas that some yields in the US may be lower than expected.
Some Brazilian corn crops, which have just begun to emerge, have not been getting the weather they need, according to a report.
The US harvest has begun to push farther into Illinois and is expected to reach farther north by the end of the week.
WHEAT futures on the Chicago Board of Trade ended 12 cents per bushel higher, taking strength from reports of overly dry conditions in Ukraine and Australia. As well, there are reports of possible frost damage in Australia as well.
US Wheat Associates says this year’s spring wheat crop has a slightly higher protein content than last year’s did.
Rain is forecast to fall in some areas of the Midwest which should help the hard red winter wheat crops. That forecast was slightly bearish for prices.
– A ministry within the Russian government is opposing plants to institute a tax cut on wheat exports, according to a report.
– During the first eight months of 2015 Ukraine’s cereal production fell by seven percent (174,000 pounds), participants said.
– Russia says it may start exporting grains to Iraq.
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