By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 3 – THE ICE Futures Canada canola market ended mostly higher on Tuesday with the July contract propped up by action in the Canadian currency.
The Canadian dollar was roughly one cent lower compared to its US counterpart which made it more attractive to domestic crushers and foreign buyers.
“There’s no selling in here, producers are waiting for about C$11.50 a bushel in old crop and at least C$11.00 in new crop,” said a Winnipeg-based analyst.
Read Also
North American Grain and Oilseed Review: Canola stronger on comparable oils
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Thursday, in gleaning support…
Dry weather across Alberta and parts of western Saskatchewan was bullish.
Canola’s July contract seems to have found some support at the C$500 per tonne mark.
However, losses in Malaysian palm oil, the US soy complex and crude oil limited the gains.
Fears over weak global growth cast a gloomy shadow over many financial markets, which was bearish for canola.
Around 21,497 canola contracts traded on Tuesday, which compares with Monday when around 19,044 contracts changed hands.
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 were down by seven to 14 cents per bushel on Tuesday, taking back all of Monday’s gains as speculators booked profits. The rising US dollar and falling crude oil market weighed on the Chicago grains and oilseeds across the board.
The strengthening currency makes exports less attractive to global buyers.
The US soybean crop was 10% seeded as of this past Sunday, which was ahead of the 6% average for this time of year.
SOYOIL futures were down on Tuesday, taking some direction from the losses in soybeans.
SOYMEAL futures were down on Tuesday.
CORN futures in Chicago were down by eight to 12 cents per bushel on Tuesday, with the good US seeding weather behind some of the selling pressure.
The US crop was 45% seeded as of this past Sunday, according to the weekly USDA report. That compares with the average for this time of year of 30% done.
WHEAT futures in Chicago were down by 17 to 18 cents per bushel on Tuesday, with the improving US production prospects behind some of the selling pressure.
The USDA estimated the country’s winter wheat crop at 61% good to excellent, which was up two points on the week. The crop was 42% headed. Spring wheat in the country is now 54% seeded, which is ahead of average, but slightly behind last year’s pace.
A crop tour of Kansas is taking place this week, and early anecdotal reports from the major wheat producing state are showing solid yields.
