By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, April 26 (CNS Canada) – ICE Futures Canada canola contracts were mixed on Tuesday, with gains in the front months and a softer tone in the more deferred positions.
Gains in CBOT soybeans were supportive, providing the catalyst for some fund buying in the Canadian market as well, according to participants.
Concerns over tightening old crop supplies and the need to keep weather premiums in the market ahead of the growing season remained somewhat supportive as well, with parts of Western Canada still on the dry side and others said to be in need of warmer temperatures.
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The most active July contract managed to settle above the C$500 per tonne mark, marking a fresh eight-month high.
However, a firmer tone in the Canadian dollar limited the upside potential in canola. Steady farmer selling was also overhanging the market.
About 27,722 canola contracts were traded on Tuesday, which compares with Monday when 31,063 contracts changed hands. Spreading was a feature, accounting for 14,684 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed eight to eighteen cents per bushel higher on Tuesday, as renewed concerns about Argentina’s crop supported the market.
Heavy rain and flooding in Argentina is expected to cause crop-loss there, with some analysts speculating as much as two-million tonnes.
Fund buying was also a feature on Tuesday.
However, an improved weather outlook for Argentina and progressing seeding in the US limited gains on Tuesday.
SOYOIL prices settled stronger on Tuesday, tracking gains in soybeans, while losses in Malaysian palm oil limited advances.
SOYMEAL closed higher on Tuesday, following nearby grain and oilseed markets.
CORN futures closed five to seven cents per bushel stronger on Tuesday as unfavourable weather in Brazil propped up prices.
Market watchers have also reduced their estimates for the country, as dry weather could hurt crops in their pollination phase.
Fund-buying added to the gains on Tuesday.
However, rain in the Midwest could slow seeding, which limited advances.
WHEAT closed eight to ten cents per bushel higher on Tuesday, propped up by a weaker US dollar.
Investor short-covering was also a feature on Tuesday.
However, wheat growing areas of the US are expected to see favourable conditions, which is bearish.
– US winter wheat conditions are at 59 per cent good/excellent condition, according to reports.
– US spring wheat seeding is 42 per cent finished, market watchers say.
