By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, June 27 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Tuesday, as gains in Chicago Board of Trade soyoil and speculative short-covering provided support.
Declining US crop ratings and expectations for an increase in the biofuel mandate from the US Environmental Protection Agency accounted for some of the strength in soyoil that spilled into canola, according to participants.
Fund traders were reportedly holding net short positions of about 10,000 to 15,000 contracts to start the day, but bought back some of those positions on Tuesday.
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Longer range forecasts calling for hotter weather across the Prairies were also somewhat supportive. However, the heat would likely be welcomed in many areas, which limited the weather related strength.
A firm tone in the Canadian dollar also tempered the gains, while the general technical bias remained pointed lower.
Statistics Canada releases its updated acreage estimates on Thursday, June 29, while the USDA’s acreage numbers will be out on Friday, June 30.
About 20,832 canola contracts traded on Tuesday, which compares with Monday when 20,822 contracts changed hands. Spreading accounted for 8,272 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed two to five cents per bushel stronger on Tuesday, supported for forecasts for hot weather next week, which could impact crops.
Forecasts for a heat dome in key US growing regions was bullish for values.
Declining crop condition ratings added to the market’s upside on Tuesday.
However, weak export sales limited the market’s strength.
SOYOIL prices closed higher on Tuesday.
SOYMEAL closed lower on Tuesday.
CORN futures closed slightly higher, but mostly unchanged on Tuesday.
The market was underpinned by technical support.
Corn’s crop conditions are steady on the week, which limited the market’s upside.
WHEAT closed one to three cents per bushel higher on Tuesday, as concern about the US crop continued.
US crop conditions are worse than market watchers had expected, which is bullish.
Adverse weather in some parts of Europe is also keeping support in the market.
