By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
WINNIPEG, March 15 (CNS Canada) – THE ICE Futures Canada canola market finished slightly higher Tuesday, taking strength from action in the Canadian currency and advances in vegetable oil.
The Canadian dollar was about half a cent lower relative to its US counterpart, which made canola more attractive to foreign buyers.
European rapeseed futures, US soyoil and Malaysian palm oil were all higher which contributed to the advances.
However, Chicago soybeans, were lower, which put pressure on values. Losses in crude oil also weighed down global economic markets which was bearish.
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Canola briefly tested above the psychological resistance level of C$470 but still settled below it.
Demand is somewhat uncertain due to new rules over Chinese dockage allowance.
Around 20,392 canola contracts were traded on Tuesday, which compares with Monday when around 14,950 contracts changed hands. Spreading accounted for about 12,370 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Winnipeg – SOYBEAN futures at the Chicago Board of Trade were down by three to four cents per bushel on Tuesday, with improved weather forecasts out of South America behind some of the weakness.
After wet weather had caused harvest delays in Brazil recently, drier conditions are now expected over the next two weeks.
Losses in crude oil and the equity markets were also overhanging the grains and oilseeds.
SOYOIL settled with small gains on Tuesday.
SOYMEAL futures were lower on Tuesday.
CORN futures in Chicago were narrowly mixed on Tuesday, lacking any clear direction as the market saw some consolidation following Monday’s rally.
Concerns that excess rainfall in the southern US grain belt would delay seeding operations, and possibly cut into intended acres, provided some support.
However, the losses in crude oil did put some pressure on corn.
WHEAT futures in Chicago were steady to down slightly in the most active months, losing just over one cent in the nearby May contract.
Improving condition ratings for winter wheat in many US states put some pressure on values, although forecasts calling for drier weather conditions in the upcoming weeks provided support on the other side.
Large world supplies and poor demand for US wheat remained a feature weighing on the futures.
– Russia has exported nearly 20 million tonnes of wheat during the crop year to date, which is running well ahead of the previous year’s pace, according reports out of the country.
– Ukrainian grain exports are also strong, with 12 million tonnes exported to date, according to the Ukrainian Grain Association.
– Egypt, the world’s largest wheat importer, is looking to secure 4.0 million to 4.5 million tonnes of wheat from domestic growers this year.
