By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Nov. 15 (CNS Canada) – ICE Futures Canada canola futures were higher on Tuesday, as solid export demand and gains in the Chicago soy complex provided support.
Volumes were on the light side and a lack of significant selling pressure meant that end users were being forced to bid the market higher, said participants.
Ongoing production uncertainty, as farmers are still trying to get in the last of this year’s crop in Western Canada, provided further support.
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However, a rally in the Canadian dollar tempered the upside, as crush margins moved lower on the day.
About 18,729 canola contracts were traded on Tuesday, which compares with Monday when 15,150 contracts changed hands. Spreading accounted for 10,480 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed about five cents per bushel stronger on Tuesday, supported by losses in the US dollar.
The greenback declined after sharp advances on Monday, which is bullish for the country’s commodities, as a stronger currency could curb international buyer-interest.
Strong demand for the oilseed as-of-late further underpinned values.
Private exporters have reported increased sales to China, which is supportive.
SOYOIL prices advanced on Tuesday.
SOYMEAL closed stronger on Tuesday.
CORN futures were three to four cents per bushel higher on Tuesday, propped up by sharp gains in crude oil futures markets.
Front crude oil futures contracts had gained close to six per cent by close on Tuesday, which is bullish.
Losses in the US dollar were also a supportive feature.
Ideas that the market may be oversold added to the gains.
WHEAT advanced five to six cents per bushel on Tuesday, supported by a weaker US dollar and investor short-covering.
Spill over strength from the corn market added to the upside.
Reports of dry conditions, in parts of the US which could impact winter wheat development, furthered advances.
