By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, Feb. 17 – The ICE Futures Canada canola market ended higher on Tuesday, underpinned by technical buying as the commodity’s charts remain pointed higher, analysts said.
Spillover support also came from the advances seen in Chicago soybean and soymeal futures.
Possible speculative buying interest and new export business from China ahead of their New Year holiday added to the bullish tone.
A lack of significant farmer selling, as they’re waiting for even higher prices and warmer weather in Manitoba and Saskatchewan, further underpinned values.
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However, spillover pressure from the declines seen in Chicago soyoil futures limited the upside.
Strength in the Canadian dollar was also bearish, as it made canola more expensive to crushers and exporters.
About 29,685 contracts changed hands on Tuesday, which compares with Friday when 28,431 contracts traded. Markets were closed for a holiday on Monday.
Spreading was a feature of the activity and accounted for 23,374 of the trades.
Milling wheat, durum and barley futures were all untraded. Though, the Exchange moved wheat prices higher, and barley lower, after Tuesday’s close.
SOYBEAN futures in Chicago rose 16 to 17 cents per bushel Tuesday, as delays in the South American harvest underpinned the market. Both harvest work and ship-loadings in Brazil are moving slower than normal, according to reports.
Weakness in the US dollar was been beneficial for exports, and further underpinned the soybean market as demand remains strong, said participants.
However, ongoing expectations that the South American soybean crop will be very large limited the advances.
SOYOIL futures in Chicago finished seven to eight points lower Tuesday, initially weighed down by losses in Malaysian palm oil before strength in soybeans helped it correct off its lows to finish the day.
SOYMEAL futures ended higher following soybeans with spreading against soyoil a feature.
CORN futures in Chicago finished two to four cents per bushel higher on Tuesday as cold weather across the US Midwest hampered deliveries while farmers were reluctant to sell, which underpinned the market.
A slightly weaker US dollar also helped support values, participants said.
However, gains were limited by weak oil prices which discouraged refineries from using ethanol.
WHEAT futures in Chicago ended one to three cents per bushel higher Tuesday while futures on the Kansas City Board of Trade ended slightly below unchanged. Plans for a cease-fire in Ukraine appear to be forgotten. Black Sea exporters had hoped the conflict between Russia and Ukraine would calm down to ensure a secure flow of goods from the region.
Weather forecasters are predicting cold weather for the eastern portion of the US Midwest, particularly Illinois, Indiana and Ohio, which also supported prices, according to a report.
The market tested resistance areas but settled off its highs. Both US$5.36 (per bushel) and US$5.44 have recently become resistance levels for the March contract in Chicago.
• According to a report, fertilizer use is likely to rise above 200.5 million tonnes in 2018, 25 percent higher than recorded in 2008.
• Japan is tendering for 100,000 tonnes of milling wheat from either Australia or the US, traders say.
• Grain stocks in Ukraine were 14 percent higher on February 1, 2015 than the same time last year.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
