By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 8 (MarketsFarm) – The ICE Futures canola market posted solid gains on Wednesday, taking some direction from the Chicago Board of Trade soy complex.
Chart-based buying contributed to the gains, with the new crop November contract back above its 50-day moving average.
Continued seeding delays in the eastern Canadian Prairies were also supportive, although the late seeding is expected to see some area initially slated for other crops shift to canola instead.
Relatively favourable crop conditions across Western Canada despite the late seeding also pressured values.
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About 17,151 canola contracts traded on Wednesday, which compares with Tuesday when 21,665 contracts changed hands. Spreading accounted for 10,350 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade climbed to fresh contract highs in some months on Wednesday as talk of increasing end user demand provided support.
With available supplies dwindling ahead of the North American harvest, there are expectations for increased buying interest from both exporters and domestic crushers. However, no fresh sales were reported this morning.
Bullish chart signals and a lack of significant farmer selling, as they’re running out of old crop supplies and are reluctant to forward price new crop until they get a better handle on production, added to the gains.
Relatively favourable growing conditions across the Midwest did temper the advances. Profit-taking at the highs also came forward.
CORN traded to both sides of unchanged, with the bias higher at the close. Strength in the cash market provided some support, while uncertainty over possible exports out of Ukraine kept some caution in the market.
Talks between Russia and Turkey to open a shipping corridor through the Black Sea have yet to yield any significant results, with market participants showing some skepticism over how much grain will eventually be able to move.
The U.S. Department of Agriculture releases its monthly supply/demand report on Friday and pre-report positioning was a feature.
WHEAT was stronger, seeing a modest recovery after Tuesday’s losses as market participants try to get a better handle on the situation with Ukrainian exports.
Australian wheat production was forecast at 30.3 million tonnes by ABARES, which would be down by six million from last year, but still the fourth largest crop on record if realized.
An estimated 1.2 million tonnes of wheat stuck in export positions in India could soon move, according to reports out of the country.
