By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, March 22 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Tuesday, but off their highs for the day as the market ran into some resistance to the upside.
Investor short covering, together with solid end user demand, accounted for much of the buying interest on Tuesday, according to participants.
Spillover from the advances seen in the CBOT soy complex, along with the need to keep some weather premiums in the market ahead of spring seeding, contributed to the gains in canola.
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However, commercial hedges came forward at the highs to temper the gains. Chart resistance, the advancing South American soybean harvest, and a firmer tone in the Canadian dollar also put some pressure on values, according to participants.
About 24,311 canola contracts were traded on Tuesday, which compares with Monday when 9,776 contracts changed hands. Spreading accounted for about 11,918 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 revisited a three-month-high on Tuesday, closing six to eight cents per bushel stronger, as technical buying took over the market.
Investors extended into long-bets for soybeans ahead of data from the United States Department of Agriculture (USDA) at the end of the month.
Soybeans prices are trading above their 200-day moving average.
However, advantageous farmer-selling due to stronger pricing has moved soybeans off of the highs reached earlier in the day.
SOYOIL prices settled higher on Tuesday, tracking Malaysian palm oil.
SOYMEAL closed stronger on Tuesday.
CORN futures closed mostly unchanged on Tuesday, gathering spill over support from gains in soybeans.
However farmer-selling and South America’s ongoing harvest tempered those advances.
WHEAT closed one to two cents per bushel stronger on Tuesday, propped up by investor short-covering.
Freezing temperatures in the US have damaged crops in parts of the US wheat belt, which is bullish.
Below-average temperatures are expected over the next two weeks in the US southern Plains.
– Japan has tendered for 126,190 tonnes of wheat for delivery in April, May, and June.
– Lebanon has reported contaminated Russian wheat to a branch of a public prosecutor’s office, according to reports.
