By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, May 17 (CNS Canada) – ICE Futures Canada canola contracts were higher on Tuesday, as gains in CBOT soybeans and a weaker tone in the Canadian dollar provided support.
Chart-based buying was a feature, although the Canadian market lagged soybeans to the upside.
Weather concerns in parts of Western Canada were a supportive influence for canola, with recent frost damage in parts of the Prairies still being assessed.
Forecasts calling for some much needed rain in dry parts of Alberta were somewhat bearish, but many areas will likely still need more moisture.
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About 14,932 canola contracts were traded on Tuesday, which compares with Monday when 12,593 contracts changed hands. Spreading accounted for about 6,384 of the contracts traded.
Milling wheat and durum futures were untraded, but barley was lower with 25 contracts trading hands.
SOYBEAN futures at the Chicago Board of Trade closed eight to sixteen cents per bushel stronger on Tuesday, supported by fund-buying.
Fund-activity resumed after previous declines, which propped up the market.
Losses in the US dollar were also bullish, as a weaker greenback makes the country’s commodities more appealing to international buyers.
Stronger crude oil prices added support, as gains in that market increase the likelihood that processors will blend above mandated amounts of biodiesel.
SOYOIL prices were mostly unchanged on Tuesday.
SOYMEAL closed stronger on Tuesday.
CORN futures closed one to four cents per bushel higher on Tuesday, also supported by gains in crude oil.
Unfavourable seeding conditions in parts of the US Midwest further advanced prices.
A weaker US dollar added to the bullish tone.
WHEAT closed six to seven cents per bushel stronger on Tuesday, supported by wet weather in key growing regions of the US.
A weaker US dollar further supported prices.
However, spring wheat seeding and emergence is ahead of last year’s pace, which limited gains on Tuesday.
– South Korea has bought 65 thousand metric tonnes of optional origin feed wheat, analysts say.
– The US winter wheat crop is pegged at 62 per cent good to excellent condition, which is on par with last week.
