By Dave Sims, Commodity News Service Canada
Winnipeg, August 2 – The ICE Futures Canada canola market posted gains on Wednesday, propped up by ideas the crop was oversold after yesterday’s steep losses.
The dominant November contract was able to finish above major resistance at the C$500 per tonne mark.
“Crop conditions are still very much a concern for growers, with dryness in the south and even some further north,” said a Winnipeg-based trader.
Gains in the US soy complex and slow farmer selling added to the upside.
However, temperatures across Western Canada have eased in recent days, which was bearish.
Losses in Malaysian palm oil dragged on prices.
About 11,007 canola contracts traded on Wednesday, which compares with Tuesday when 13,593 contracts changed hands. Spreading accounted for 876 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans ended five to seven cents stronger on ideas the crop was oversold after yesterday’s plunge.
The gains could have been more, but light rains fell across much of the Mississippi Delta, which was bearish.
The crush numbers for the month of June were higher than expected.
Corn finished two cents stronger as dryness concerns continue to dominate much of the discussion facing this year’s crop. Ohio and Indiana are in dire need of rain which supported prices.
The USDA put the June crush numbers for ethanol at 437 million bushels, which was in line with expectations.
International FCStone pegged US corn yields at 162.8 bushels an acre, which was on the low side of recent estimates.
The wheat market chopped around in technical trading for much of the day before ending relatively unchanged.
Forecasts are calling for some rain in parts of South Dakota and Montana which was bearish.
There is likely just a week or two left of the US winter wheat harvest.