By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Jan. 22 (CNS Canada) – ICE Futures canola contracts were stronger on Tuesday, seeing a correction after Monday’s declines.
Weakness in the Canadian dollar contributed to the gains, as the currency dipped below 75 U.S. cents.
A firm tone in Chicago Board of Trade soyoil was also supportive, although losses in soybeans did put some pressure on values. However, canola was already lower yesterday when markets in the United States were closed for Martin Luther King Jr. Day.
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…
Uncertainty over the latest diplomatic tensions between China and Canada kept some additional caution in the canola market.
About 26,127 canola contracts traded on Tuesday, which compares with Monday when 6,901 contracts changed hands. Spreading accounted for 14,794 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, pressured by concerns over Chinese demand as trade resumed after the Martin Luther King Jr. holiday.
While China has reportedly bought some more soybean cargoes from the United States recently, more purchases will be needed to cut into the large U.S. stockpile. In addition, actual confirmation on the business remains lacking due to the government shutdown.
Mounting global economic uncertainty and the sharp drop in many equity markets on Tuesday also spilled over to weigh on soybeans, according to participants.
Recent rainfall in dry areas of Brazil was another bearish influence, although dryness persists in some key soybean growing regions and excessive moisture could be causing problems with crops in Argentina.
CORN settled with small losses, with the broad-based selling in the wider financial markets and spillover from soybeans behind some of the activity.
However, solid weekly export inspections provided underlying support.
WHEAT futures ended mixed, with gains in the Chicago and Kansas City winter wheat contracts and losses in Minneapolis spring wheat.
Ideas that Russian wheat exports are finally showing signs of slowing down provided support, especially as U.S. wheat starts to pencil in more favourably for global buyers.
Weekly U.S. wheat inspections were solid at about half a million
tonnes.
