By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Dec. 24 (MarketsFarm) – ICE Futures canola contracts traded to both sides of unchanged in thin and choppy trade on Tuesday, as participants adjusted positions and moved to the sidelines ahead of the Christmas holiday. The bias was to the upside at the close, with speculative short-covering and solid end user demand providing support.
North American agricultural markets closed early on Tuesday, with the ICE canola market remaining closed through Christmas and Boxing Day. Trade in canola will resume on Friday, Dec. 27. The Chicago market reopens a day earlier.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
Canola crush margins remain at very wide levels, making the oilseed attractively priced for end users.
Gains in Chicago Board of Trade soybeans and a weaker tone in the Canadian dollar were also supportive.
However, large supplies in the commercial pipeline put some pressure on values.
About 13,801 canola contracts traded on Friday, which compares with Monday when 32,877 contracts changed hands. Spreading accounted for 9,630 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, hitting fresh six week highs as investors continued to cover short positions ahead of the New Year.
Ideas that the trade deal between the United States and China is getting closer to being signed remained somewhat supportive.
U.S. President Donald Trump indicated that the deal may be signed sometime early in the New Year, but details remain sketchy and traders are cautious.
China has reportedly promised to buy US$40 billion worth of US farm goods a year.
CORN was slightly lower, with pre-holiday positioning the feature in the lightly traded market.
The U.S. hog herd as of December 1st was up 3 per cent from last year, according to updated data released Monday afternoon.
WHEAT futures were stronger, with speculative position evening the feature.
Adverse conditions in a number of wheat growing regions of the world, including Australia and Europe, provided some support.
However, U.S. wheat continues to face competition on the export market. Ukrainian wheat exports are up 35 per cent on the year, according to the latest numbers out of that country.
