By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, December 29 – The ICE Futures Canada canola market finished higher Tuesday, tracking gains in the Chicago soy complex.
European rapeseed futures and crude oil were slightly higher which also gave a boost to canola prices.
Most farmers are hanging onto supplies, waiting for the new tax year, which helped underpin the market.
Crushing activity is at a high level in Western Canada, a trader said.
“Crushers are going about as flat out as they can,” he said.
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Some soybean growing areas of Brazil could use more rain, which was bullish.
However, the Canadian dollar was slightly stronger relative to its US counterpart which made canola less attractive to out-of-country buyers.
The potential for large stockpiles of Argentina soybeans to be dumped onto the market also cast a bearish tint over canola.
Around 21,953 canola contracts were traded on Tuesday, which compares with Thursday when around 5,279 contracts changed hands. Spreading accounted for about 13,744 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed four-and-a-half cents per bushel to seven cents per bushel higher Tuesday as bargain buying provided support after several sessions of slides.
Limited soybean selling from Argentina’s producers also buoyed prices on Tuesday.
But beneficial rains in Brazilian state Mato Grosso limited gains, as dryness in that region had previously been bullish.
SOYOIL prices settled higher on Tuesday, following Malaysian palm oil.
SOYMEAL closed higher on Tuesday.
CORN futures closed one to one-and-a-half cents per bushel stronger on Tuesday, supported by gains in wheat.
US farmers have been holding corn stocks back from the market, which has also been supportive, market watchers say.
But export competition from Argentina and high global supplies capped gains.
WHEAT closed six-and-a-half cents per bushel to nine cents per bushel stronger on Tuesday as rain in the US put the country’s crops at risk.
Rain in the US Midwest, with more anticipated to come, has caused flooding, and excess moisture has the potential to cause disease, which is bearish.
Bargain buying also supported prices on Tuesday, traders said.
– This year’s Ukrainian winter wheat crop is projected at 17.8 million metric tonnes, up from last year’s 17.5 million metric tonnes.
– Phoenix Commodities will be supplying 50,000 tonnes of wheat to Bangladesh at $233.96 per tonne.
