By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Sept. 8 – ICE Futures Canada canola contracts were stronger on Tuesday, as the oversold market saw a corrective bounce to start the week.
Advances in the CBOT soy complex provided some spillover support for canola, according to traders, while talk of fresh export business contributed to the gains.
Harvest delaying rains in parts of Western Canada over the Labour Day long weekend were somewhat supportive as well. There was also a lack of significant farmer selling, as declining cash prices discouraged some country movement, according to a broker.
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However, end users were not that aggressive on the buy side as post-harvest deliveries are still expected to pick up over the next few weeks.
A firmer tone in the Canadian dollar and generally bearish technical signals also tempered the advances, according to participants.
About 19,792 canola contracts were traded on Tuesday, which compares with Friday when 22,296 contracts changed hands. Spreading accounted for 5,248 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed nine to 13 cents per bushel higher Tuesday on weather concerns in the US Farm Belt.
Analysts say continued rains in the area pose a threat to crops, and will stop farmers from being able to continue harvest, which is bullish.
Bearish factors like promising soil moisture for the upcoming soybean planting season in Brazil could weigh on prices in coming weeks.
SOYOIL prices settled stronger on Tuesday, following gains in Malaysian palm oil.
SOYMEAL closed mixed on Tuesday.
CORN futures closed four to five cents per bushel higher Tuesday as Brent crude oil prices firmed.
Corn can be processed into ethanol, so higher energy prices are favourable for the commodity.
Market watchers say the trade is looking forward to a monthly USDA production report, which is expected to be bullish for corn.
WHEAT futures in Chicago closed five to seven cents per bushel higher Tuesday on investor-short covering after prices dropped to a five-year-low.
On Friday wheat prices fell to a five year low as the commodity has been consistently plagued with high global supplies and a lack of demand.
Investors say US cash prices are still too high to be competitive, which is bearish.
– US winter wheat seeding will begin soon with mixed ideas on acres, analysts say.
– Egypt’s agriculture minister has been arrested for alleged corruption.
