By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
Winnipeg, Jan. 26 – ICE Futures Canada canola contracts were down on Tuesday, with a sharp rise in the Canadian dollar behind much of the selling pressure.
Recent weakness in the currency has propped up the canola market compared to CBOT soybeans. However, with the Canadian dollar up by over a cent relative to its US counterpart, canola fell to the low end of its well established trading range.
The firmer currency cuts into crush margins and makes exports less attractive to international buyers.
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Losses in CBOT soybeans accounted for some spillover selling in the Canadian market as well, according to participants.
However, advances in soyoil did help temper the declines. Solid commercial demand helped underpin the market as well.
About 13,769 canola contracts were traded on Tuesday, which compares with Monday when 16,840 contracts changed hands. Spreading accounted for about 6,816 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although wheat prices were revised after the close.
SOYBEAN prices finished three to four cents per bushel lower Tuesday, as concerns over a drop in Chinese shares weighed on prices. Shares fell 6.4% in the Asian country, according to a report.
Mild weather in Brazil was also seen as a bearish factor for prices, an analyst said.
The market is preparing for increased offers from South America, which also pressured prices.
Soyoil ended 30 points higher, taking strength from gains in crude oil.
SOYMEAL futures sunk on Tuesday, taking direction from soybeans along with a slowing livestock market.
Corn futures on the Chicago Board of Trade finished marginally weaker Tuesday as large world supplies weighed on prices.
However corn prices received some support from wheat prices.
Higher prices for crude oil were also supportive.
Wheat futures on the Chicago Board of Trade chalked up more gains Tuesday, rising three cents per bushel, as ideas took hold that Russia will move ahead with measures to limit wheat exports.
The March contract tested nearby support but settled above it before close.
– A group of investors from China are on the cusp of buying one of Australia’s largest grain farming operations. According to a report on china.org.cn, the deal involves a plot of land in the wheatbelt north of Perth.
– Pakistan’s wheat exports doubled during the first half of the marketing year. From July to December of 2015, about 274 tonnes of wheat was moved, according to the data of Pakistan Bureau of Statistics (PBS).
