Winnipeg Commodity Exchange canola futures settled higher on Wednesday, regaining some ground lost in Tuesday's slide as Chicago soy futures rallied, traders said. Canola settled $4.10 to $5.50 per tonne higher, with July up $4.60 at $377.90 and November up $4.60 at $399.20.
"It's anybody's guess what happens tomorrow: we're in a full-blown weather market," a trader said, noting US markets were driven higher by rain damage to US wheat. At the Chicago Board of Trade, July soybeans settled 10 US cents per bushel higher to US $8.39 and July soybean oil futures were down 0.01 US cent per lb at 35.31 US cents.
Crusher buying on strong cash margins and routine exporter buying helped support canola futures, along with short covering and speculative buying, traders said. Scale-up farmer selling limited gains, traders said. Funds were sidelined after Tuesday's sell-off.
An estimated 3,136 July/November spreads traded mainly from $21.40 to $22.10 with 326 November/January from $8.60 to $9.10 and 210 July 2008/November 2008 from $6 to $7.50. Canola volume was an estimated 12,882 contracts, down from 19,018 on Tuesday.
Barley futures rose on unaggressive speculative and commercial buying amid thin volumes, supported by a firmer tone in CBOT corn futures, traders said. July barley was up $3.50 per tonne at $202, October up $1.50 at $170.80 and December up $2 at $174.
Barley volume was an estimated 348 contracts, down from 1,346 on Tuesday. Feed wheat futures also firmed with July up $1 per tonne at $172, October up $1 at $169.50 and December up $1 at $171.50. Volume was estimated at 524 contracts, dominated by 200 October/December spread at $2.