By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, Nov. 25 – ICE Futures Canada canola contracts ended higher on Tuesday, following along with the advances seen in Chicago soybeans. But, canola was lagging to the upside as traders were waiting to see if the soybean advances will be sustained before pushing the Canadian market too much higher, brokers said.
Canola futures were also underpinned by solid demand, despite the Yorkton, Saskatchewan crushing facility still being closed.
Slow farmer selling into Canadian cash markets, as farmers are waiting for stronger prices and the new tax year, further underpinned values.
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However, some technical selling, and the upswing in the value of the Canadian dollar on Tuesday were weighing on the market.
About 14,065 contracts changed hands on Tuesday, which compares with Monday when 17,296 contracts traded.
Milling wheat and durum futures were untraded, though wheat prices were adjusted after Tuesday’s close. Barley futures moved higher, with 25 December contracts traded.
CORN futures in Chicago ended six to seven cents per bushel higher Tuesday on strong demand, as weekly inspection numbers pointed to higher US exports.
According to the USDA, just under 530,000 tonnes of corn were inspected for export last week, significantly higher than the week before which recorded a total of just 409,000 tonnes.
Spillover buying from soybeans also lent support to values.
France is reportedly loading up a massive shipment of feed wheat to South Korea, underscoring the wide-range of options other countries have when sourcing livestock feed, traders said.
The outlook for ethanol is also uncertain. One analyst suggested it might be more expensive than gasoline in certain areas, decreasing its attractiveness on the market.
SOYBEAN futures in Chicago rose 15 to 17 cents per bushel higher Tuesday on ideas of continued demand from foreign buyers.
Rising demand for soymeal also boosted values as logistics problems tightened the supply, according to a report.
Brazilian farmers have planted about 75% of this year’s soybean crop, which was slightly bearish and limited the gains.
SOYOIL futures were 17 to 23 points higher on Tuesday, with spreading against soymeal a feature.
SOYMEAL futures ended sharply higher due to strong export demand, according to traders.
WHEAT futures in Chicago climbed seven to nine cents per bushel higher on Tuesday, and 13 cents per bushel higher on the Kansas City Board of Trade, as data from the USDA crop report indicated cold temperatures had damaged some of the winter wheat crop.
Young seedlings were especially vulnerable and the USDA pegged wheat conditions at 58% good or excellent, down from 60% the week previous.
A lag in soybean export inspections allowed wheat to fill the gap with 16.4 million bushels loaded last week, which was above the 10-week average of 14.9 million, according to a report.
– Figures from the German government indicate the country shipped 231,000 tonnes of wheat to Iran in September, 2014.
– Saudi Arabia’s Flour Mills Organization purchased 345,000 tonnes of hard wheat from Glencore, Noble and Louis Dreyfus, according to a report.
– Australia is bracing itself for future outbreaks of Ug99 Wheat Rust, according to a report.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
