By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, April 19 – THE ICE Futures Canada canola market finished stronger on Tuesday, taking strength from gains in the US soy complex.
Prices were also bolstered by advances in Malaysian palm oil and crude oil.
Some parts of Alberta and Saskatchewan are too dry right now which contributed to the upside, according to reports.
Technical buying was a feature as the July contract flirted with the 200-day moving average, said an analyst.
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However, the Canadian dollar was up nearly a cent relative to its US counterpart, which made canola less enticing to international customers.
Traders are positioning themselves ahead of Thursday’s Statistics Canada planting intentions report.
Farmers are steady sellers right now as they gather cash ahead of seeding.
“We’re hearing as more and more guys are getting ready to seed, basis levels are improving in a number of locations,” an analyst noted.
Around 42,741 canola contracts traded on Tuesday, which compares with Monday when around 28,365 contracts changed hands. Spreading accounted for about 30,598 of the contracts traded.
Milling wheat, barley and durum were untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed nineteen to thirty one cents per bushel stronger on Tuesday, as rain in Argentina has stalled harvest and put crops at risk.
Heavy rains in Argentina have the potential to cause crop loss, and have caused harvest activity to fall to the slowest level in 13 years, market watchers say.
Strong demand for US soybeans was also a feature, analysts say.
Weakness in the US dollar added to the bullish tone.
SOYOIL prices settled higher on Tuesday, tracking gains in Malaysian palm oil.
SOYMEAL closed stronger on Tuesday.
CORN futures closed three to five cents per bushel higher on Tuesday, supported by rains in Argentina and dry weather in Brazil.
While rain in Argentina isn’t expected to hurt corn crops in the region, it is slowing harvest, which is bullish.
Dry weather across Brazil’s Corn Belt could reduce output, analysts say.
WHEAT closed about thirteen to fourteen cents per bushel stronger on Tuesday, propped up by investor short-covering.
Losses in the US dollar further supported prices.
Rain in wheat growing regions in the US are being called excessive by some analysts, and beneficial by others.
– US crop progress showed 57 per cent of winter wheat crop in good to excellent condition.
– The European Union’s wheat harvest is expected to be down 3.4 per cent from last year, market watchers say.
