By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Feb. 28 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Wednesday, hitting their highest levels in three months as gains in Chicago Board of Trade soybeans and weakness in the Canadian dollar provided support.
While CBOT soyoil futures were softer on the day, the activity in soymeal and the Canadian dollar were enough to help crush margins improve. Supportive technical signals also underpinned the canola market, with speculators reportedly adding to long positions.
However, farmer selling tempered the upside, as producers are still sitting on large supplies. Expectations for increased seeded acres this spring also weighed on values, according to participants.
Read Also
North American Grain and Oilseed Review: Canola swings upward
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures climbed higher on Tuesday, getting a boost…
About 25,469 canola contracts traded on Wednesday, which compares with Tuesday when 37,304 contracts changed hands. Spreading accounted for 15,160 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were higher on Wednesday, as the forecasts remain hot and dry across most of the growing regions in Argentina over the next week.
The USDA announced a 250,000 tonne sale of U.S. soybeans to unknown destinations this morning, adding to the firmer tone.
However, heavy deliveries against the March soyoil contract put some pressure on values.
CORN futures followed soybeans and wheat higher, with the dryness in Argentina also providing support. Wet weather in parts of the United States added to the firmer tone, as the precipitation is causing rivers to flood and slowing some barge movement.
Large old crop supplies and farmer selling tempered the upside in corn.
WHEAT futures were up sharply, with the Kansas City hard red winter wheat market leading the charge higher, as crop prospects in the U.S. Plains continue to deteriorate due to a lack of moisture.
The mounting weather worries kept selling to a minimum, while traders holding short positions were looking to get out of them.
Cold temperatures in Europe added to the firmer tone in wheat.
