By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, June 15 (CNS Canada) – ICE Futures Canada canola contracts rebounded on Thursday, posting gains with vegetable oil and ideas the recent losses were overdone.
Advances in Chicago Board of Trade soybeans added to the upside.
The Canadian dollar was about a quarter of a cent lower relative to its US counterpart, which made canola more attractive to foreign buyers.
Tightness in commercial stocks underpinned the market.
However, farmer selling and uncertain weather outlooks in both Canada and the US dragged on prices.
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“There is still some nervousness in the market,” said a trader in Winnipeg. “I don’t think anybody is going to chase the market around right now or sell it too low.”
Strong soybean exports from Brazil also cast a bearish tint over canola.
About 27,049 canola contracts traded on Thursday, which compares with Wednesday when 13,552 contracts changed hands. Spreading accounted for 9,204 of the contracts traded. There was a large exchange for physical trade at the close accounting for a large chunk of the daily volume.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed three to five cents per bushel stronger on Thursday, underpinned by strong export demand reported by the United States Department of Agriculture (USDA).
Soybean sales were up on the week, which is supportive, though they were in line with analyst expectations, which limited some of the market’s upside.
Crush activity was also stronger than expected, which added to the market’s upside.
Analysts say technical buying was also a feature.
SOYOIL prices closed higher on Thursday.
SOYMEAL closed weaker on Thursday.
CORN futures closed about half a cent to two cents higher on Thursday.
The grain was underpinned by advances in the nearby wheat market and technical buying.
However, forecasts for beneficial rains in the US Midwest limited the market’s strength.
WHEAT closed ten to 12 cents per bushel stronger on Thursday, supported by weather concerns in some prominent growing areas of the US.
Dry weather in parts of Montana, North and South Dakota threw the country’s crop development into question.
Ideas that other key growing regions, namely Europe, Ukraine and China, will see dry conditions this year added to the market’s upside.