By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, June 29 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Thursday, as a rally in Minneapolis spring wheat and end of the month positioning provided support.
Speculators exiting the front month exaggerated the move in the July contract, with most of the buying coming in the last fifteen minutes of trade.
Dryness in the key US spring wheat growing regions kept wheat rallying sharply in Minneapolis, and some of that buying interest spilled into canola, according to participants.
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Canola acres reported by Statistics Canada Thursday morning were slightly bearish for the futures, tempering the advances. StatsCan pegged canola area at 22.8 million acres, which was at the top end of trade guesses and well above the 20.4 million seeded in 2016.
However, there is still a long growing season ahead, and plenty of areas of concern across the Prairies. Tight old crop supplies and fund short covering were also supportive.
About 24,165 canola contracts traded on Thursday, which compares with Wednesday when 25,827 contracts changed hands. Spreading accounted for 9,782 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed about one to three cents per bushel stronger on Thursday, advancing in positioning ahead of data due out from the United States Department of Agriculture on Friday.
The USDA is set to release its Acreage and Grain Stocks reports tomorrow.
Weakness in the US dollar was another supportive feature, as it makes the country’s commodities more appealing to international buyers.
Sharp advances in the wheat markets had a spill-over bullish effect on soy.
SOYOIL prices closed higher on Thursday.
SOYMEAL ended weaker on Thursday.
CORN futures closed about two to three cents per bushel higher on Thursday.
Spill-over support from the nearby wheat market was one cause of the strength, as was trader-positioning ahead of USDA data.
Forecasts for hot temperatures in the US Midwest were also bullish for the market.
Stronger ethanol production added to the upside.
WHEAT finished 16 to 36 cents per bushel stronger on Thursday, with the biggest gains in Minneapolis spring wheat.
Chicago futures were following the spring wheat market, which saw sharp advances throughout the day.
That market was underpinned by concerns about yields amid unfavourable weather in the US.
A weaker US dollar furthered the market’s advances.
Positioning into tomorrow’s data from the USDA was also a factor.
