By Dave Sims, Commodity News Service Canada
Winnipeg, October 25 – The ICE Futures Canada canola market recorded solid gains on Wednesday, due to action in the Canadian currency. The Bank of Canada decided not to hike the interest rate, which sent the Canadian dollar plunging and made canola more attractive to international buyers.
Farmers in Northern Alberta are trying to get the last of the harvest done, but snow is making that difficult.
Funds continue to add to their long positions in canola, according to a trader in Winnipeg.
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However, rain in Northern Brazil has helped replenish soil moisture in dry soybean fields, which was bearish.
Weakness in U.S. soyoil undermined values.
Around 36,328 canola contracts were traded on Wednesday, which compares with Tuesday when around 38,801 contracts changed hands. Spreading accounted for 26,706 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished relatively unchanged on Wednesday as futures chopped around in technical trade.
There are ideas the Chinese government is preparing to slow down its purchasing of soybeans for its state reserve, which was bearish.
Harvest activity in the U.S. is beginning to wrap up.
Corn ended two cents lower on Wednesday as reports continued to come in indicating yields were better than expected.
Ethanol production in the U.S. was up 20,000 barrels on a daily basis to just over one million, which was supportive.
The market also enjoyed some technical support as the December contract hovered near the 50-day moving average.
Wheat ticked lower by one to two cents in technical trading.
Weather conditions in the U.S. Midwest are turning more favourable for winter seeding, which was bearish.
There are conflicting opinions about the true size of this year’s winter wheat crop.
