By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, April 5 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Tuesday, but lagged the CBOT soy complex to the downside as weakness in the Canadian dollar countered the spillover selling pressure.
CBOT soyoil futures were down sharply from their nearby highs, while Malaysian palm oil futures also posted large losses in overnight activity.
Chart based positioning, as the uptrend in canola shows signs of slowing down, contributed to the softer tone in canola, according to participants.
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However, the Canadian dollar was down sharply relative to its US counterpart, which helped keep canola looking attractively priced to both exporters and domestic crushers.
Weather uncertainty in some parts of Western Canada ahead of spring seeding was also said to be keeping some caution in the market.
About 24,261 canola contracts were traded on Tuesday, which compares with Monday when 20,233 contracts changed hands. Spreading accounted for about 11,354 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed about six to nine cents per bushel weaker on Tuesday, pressured by sluggish demand for the commodity.
Gains in the US dollar were also bearish for soybeans.
Weather in the US has been more favourable for soybean planting than corn, analysts say, which added to the bearish tone on Tuesday.
SOYOIL prices settled weaker on Tuesday, tracking Malaysian palm oil.
SOYMEAL closed unchanged to higher on Tuesday, propped up by nearby grain markets.
CORN futures closed about two to three cents per bushel stronger on Tuesday, as increased foreign demand provided support, analysts say.
Delayed planting also supported prices.
WHEAT closed about one cent per bushel weaker on Tuesday, pressured by gains in the US dollar.
A stronger greenback makes US wheat less appealing to foreign buyers.
Weak demand for wheat added to the declines on Tuesday.
– Ethiopia has bought 499,536 tonnes of wheat, likely from the Black Sea region, market watchers say.
– Pakistan is set to meet its wheat target, according to reports out of the country.
