By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, October 13 – THE ICE Futures Canada canola market finished higher Tuesday, largely driven up by gains in US soybeans.
Strength in US soyoil also added to the upside while large funds entered the market as well.
“There’s some fund money on the long side in the US markets,” said a trader.
Canola’s November contract easily broke through the resistance level of C$470 to start the day, and then shot up to momentarily test the C$480 mark before retreating.
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Farmer selling hasn’t been as aggressive as initially thought which was supportive.
However, bigger than expected yields dragged on values.
The technical bias could be tilting to the downside and prices could be levelling off, according to the trader.
A total of 42,634 canola contracts were traded on Tuesday, which compares with Friday when 23,639 contracts changed hands. The Canadian market was closed on Monday due to the Thanksgiving Day Holiday. Spreading accounted for 28,918 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 19 to 26 cents per bushel higher Tuesday on renewed oilseed interest from China.
The US Department of Agriculture said Tuesday that private exporters in China booked 240,000 metric tonnes of soybeans for delivery in the 2015-16 marketing year.
The news was especially bullish as China is the top buyer of the commodity, and market watchers have been concerned about demand from the country.
However prices could see weakness in coming sessions as farmers wrap up harvest, though market watchers say many do not want to sell at current levels.
SOYOIL prices settled higher on Tuesday, tracking Malaysian palm oil.
SOYMEAL closed higher on Tuesday following neighbouring oilseed markets.
CORN futures closed three cents per bushel stronger Tuesday on investor short covering.
Over the past few sessions corn prices had sunk to a three-week low.
However favourable harvest weather in the US Farm Belt kept the pressure on corn prices.
WHEAT as closed 11 to 12 cents per bushel stronger on Tuesday as dryness in the Black Sea region supported prices.
Ukrainian farmers have been reporting dry soil, which won’t affect this year’s production, but it could harm next year’s winter wheat, which is currently being seeded.
Prices were buoyed from the five year lows they were sitting at, but a global supply glut kept a bearish lid on prices.
– Egypt has tendered for 180,000 tonnes of wheat and Saudi Arabia tendered 740,000 tonnes, but neither country is buying from the US.
– The former Canadian Wheat Board, now G3 Canada Ltd., is expanding its network by building a year-round shipping terminal in Hamilton.