By Dave Sims, Commodity News Service Canada
Winnipeg, August 17 – THE ICE Futures Canada canola market chalked up gains on Thursday, tracking advances in the US soy complex and vegetable oil.
Bulls in the market managed to pull the front-month November contract up to the psychologically-important C$500 per tonne mark.
The Canadian dollar was a fifth of a cent lower, relative to its US counterpart, which made canola more attractive to domestic crushers and international buyers.
Tightness in canola stocks underpinned the market. No one is exactly sure how big this year’s crop will be and rationing is already underway.
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Global demand for oilseeds remains strong.
However, recent rains in Western Canada and the US Plains have helped oilseed development, which was bearish.
Crush margins remain at their lowest levels since last summer.
Around 9,453 canola contracts were traded on Thursday, which compares with Wednesday when around 9,249 contracts changed hands.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans ended seven to eight cents higher as the market continued to recoup some of the losses over the past week.
A group from China has agreed to buy 3.8 million tonnes of soybeans from the US, which gave the market a boost.
The soycrush numbers for July were also stronger than expected and weekly exports were solid.
The corn market ended two cents lower in technical trade.
Cooler weather and scattered showers in the US Corn Belt continue to pressure prices.
On the flip side, weekly exports in the US were higher than expected.
Wheat fell three to six cents lower as more rain fell in the US Northern Plains.
Technical selling was a feature and the strength of the US dollar was dragging down prices.
US weekly exports were higher than expected.
