By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Oct. 6 – ICE Futures Canada canola contracts were stronger on Tuesday, boosted by good end user demand and speculative buying interest.
Harvest delays for the remaining canola crops in Alberta and Saskatchewan provided some additional support, according to a broker who estimated that there was maybe 50 per cent of the Alberta crop still to be harvested.
However, the harvest is nearly complete in the eastern Prairies. Steady farmer selling, a firm Canadian dollar, and technical resistance all tempered the advances, according to participants.
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About 25,007 canola contracts were traded on Tuesday, which compares with Monday when 26,253 contracts changed hands.
Milling wheat, durum, and barley were all untraded, although wheat prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed three to four cents per bushel higher on Tuesday, supported by weakness in the US dollar.
A lower dollar is supportive to commodities as it increases the likelihood of foreign buying interest.
A better than expected export report released on Monday continued to buoy soybean prices as well, as analysts expect the boost shows increased demand for oilseeds.
SOYOIL prices settled higher on Tuesday following neighbouring markets.
SOYMEAL closed mixed on Tuesday.
CORN futures closed four to five cents per bushel stronger Tuesday, propped up by neighbouring markets and investor short-covering.
Traders kept active in the market ahead of an upcoming government crop report due Friday.
Market watchers say harvested acres may be cut in the report due to adverse weather.
Firming crude oil prices added to the bullish tone.
WHEAT futures in Chicago closed ten to 12 cents per bushel stronger Tuesday as poor growing conditions in other wheat growing regions supported prices.
Australia is seeing too dry conditions, while Russia is too cold.
If the weather takes a toll on the crops it would create more room for US wheat in global markets, which is bullish.
Prices were further supported by data from the USDA which indicated winter wheat seeding was behind the past five year’s average of 51 per cent at 49 per cent.
– Indonesia’s wheat imports for 2015 will be less than the forecasted 7.4 million tonnes, flat to the previous year, analysts say.
– South Korea is seeking up to 98,650 tonnes of milling wheat via tenders, according to traders in the country.
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