By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 26 (CNS Canada) – ICE Futures Canada canola contracts were up on Wednesday, taking back most of the losses posted earlier in the week as speculators returned to the buy side.
A turn higher in Chicago Board of Trade soybeans and soyoil helped provide the catalyst for the move up in canola, according to participants.
Tight old crop supplies, persistent weather concerns in parts of Western Canada, and a softer tone in the Canadian dollar all contributed to the rally in canola.
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However, the nearby technical signals have turned bearish, making the gains a selling opportunity from a technical standpoint. Generally improving crop conditions in many areas also tempered the advances.
About 20,246 canola contracts traded on Wednesday, which compares with Tuesday when 18,923 contracts changed hands. Spreading accounted for 4,614 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 were up by three to eight cents per bushel on Wednesday.
Soybeans were due for a corrective bounce after yesterday’s losses, and chart-based buying accounted for most of today’s gains.
Recent downgrades to US soybean condition ratings also provided some support, although the nearby weather forecasts are looking more favourable for crop development.
SOYOIL futures were stronger on Wednesday.
SOYMEAL futures settled higher on Wednesday.
CORN futures in Chicago were up by two to four cents per bushel on Wednesday.
Speculative buying was a feature in corn, as values corrected off of nearby support.
The uncertain new crop production situation added to the firmer tone, although the better long range forecasts kept a lid on the market.
Large South American supplies and improving reports out of Russia and Ukraine also weighed on prices.
WHEAT futures in Chicago were up by two to four cents per bushel, while Minneapolis spring wheat was up by as much as 13 cents.
After posting large losses in recent days wheat was looking oversold, which left the futures open to Wednesday’s corrective bounce.
Persistent dryness in key spring wheat growing regions of the northern US added to the firmer tone, despite recent moisture in some areas, said participants.
However, large world wheat supplies and the harvest pressure from US winter wheat tempered the upside.
