By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Jan. 4 (CNS Canada) – ICE Futures Canada canola contracts settled with solid gains on Thursday after chopping around both sides of unchanged in early activity. Supportive technical signals brought in some speculative buying with some stops hit on the way up.
A lack of farmer selling contributed to the gains, while end user demand remains solid on the other side, according to participants.
However, a softer tone in the Chicago Board of Trade soy complex and continued strength in the Canadian dollar tempered the upside.
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About 20,419 canola contracts traded on Thursday, which compares with Wednesday when 13,539 contracts changed hands. Spreading accounted for 13,768 of the contracts traded.
Soybean futures at the Chicago Board of Trade posted small losses on Thursday. Shifting weather forecasts out of South America are looking a bit more favourable for crop development in Argentina, with more rain on the horizon. That had traders taking some of the weather premiums out of the market that had built up over heat concerns recently.
Chart-based speculative selling contributed to the declines, as traders squared positions ahead of the USDA’s next supply/demand report (Jan. 12).
Corn futures were also pressured lower by the improving South American weather forecasts, although the market remains rangebound overall.
Logistics issues along the United States river systems, due to cold temperatures, kept some caution in the market.
Wheat futures were mixed, with gains in Minneapolis spring wheat, and losses in the Chicago and Kansas City contracts.
While freezing temperatures and possible winterkill in the U.S. Plains remained supportive, those concerns have largely been priced into the futures for now and profit-taking weighed on winter wheat values.
Relatively favourable conditions in Russia and Ukraine also put some pressure on prices.
However, concerns over tightening supplies of higher protein wheat kept the Minneapolis futures underpinned.
