By Terryn Shiells and Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, Feb. 24 – The ICE Futures Canada canola market was stronger on Tuesday, following the advances seen in Chicago soybean and soyoil futures, analysts said.
Some pricing by domestic crushers was also supportive, as their margins saw some improvement earlier in the trading session, brokers noted.
Steady commercial demand and chart-based buying further underpinned values.
However, profit taking at the highs of the day limited the upside, as did a pickup in farmer selling.
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The large global oilseed supply situation and a turn higher in the value of the Canadian dollar were also bearish.
About 44,102 contracts changed hands on Tuesday, which compares with Monday when 31,614 contracts traded. Spreading accounted for 32,910 of the trades.
Milling wheat, durum and barley futures were all untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade were up sharply at Tuesday’s close, with a truckers strike in Brazil providing the catalyst for some of the buying interest.
The labour disruption will slow movement to the Brazilian ports, which should help keep some international export demand focused on the US.
Bullish technical signals contributed to the gains, although profit-taking came forward at the highs to limit the advances.
Expectations for large South American supplies, despite any nearby logistics issues, were also overhanging the soy market.
SOYOIL futures were higher on Tuesday, taking some direction from the rally in soybeans.
SOYMEAL futures higher on Tuesday, as the commodity continued to enjoy solid demand from both exporters and domestic livestock feeders.
CORN futures in Chicago were steady to down one cent per bushel at Tuesday’s close, after trading to both sides of unchanged in relatively directionless activity.
The rally in soybeans did provide some spillover support for corn, but with no fresh fundamental news of its own the corn market failed to hold onto any gains.
The fact that farmers are still holding onto large supplies of unpriced corn also put some pressure on the corn market, according to participants.
WHEAT futures in Chicago finished narrowly mixed on Tuesday, as ideas that US supplies remain overpriced internationally continued to put some pressure on values.
However, cold temperatures across parts of the Midwest and the threat of winterkill provided some underlying support for wheat.
Ideas that Egypt is once again considering tendering for US wheat were also supportive.
– According to reports, Egypt purchased 290,000 tonnes of US hard red wheat at an average price of US$273 per tonne. In the previous week’s tender, average offers were at US$304 per tonne, and were deemed to high by Egypt.
– Forecasts are calling for cooler than normal temperatures across most of the US winter wheat growing areas, but snow cover is also said to be adequate in many areas.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
