By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, January 19 – THE ICE Futures Canada canola market finished higher taking direction from the US soy complex.
Malaysian palm oil futures were higher today, as the El Nino weather phenomenon has cut into production forecasts, which helped to support canola.
There are ideas canola is relatively cheap compared to other vegetable oils, said a trader.
Some traders were positioning themselves ahead of tomorrow’s decision by the Bank of Canada whether or not to adjust the interest rate.
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On the other side of the coin, improvements in the South American soybean crop limited the gains.
Losses in crude oil were slightly bearish for canola while farmer selling increased, an analyst said.
Milling wheat and durum were untraded while 25 barley contracts changed hands.
Around 16,271 canola contracts were traded on Tuesday, which
compares with Monday when around 10,207 contracts changed hands. Spreading accounted for about 9,672 of the contracts traded.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed about one to five cents per bushel stronger on Tuesday, supported by hot and dry conditions in Brazil.
Key soybean producing regions in Brazil have seen unfavourable weather, according to reports, but some analysts say last month’s rains will keep the crops healthy.
Investor short-covering also propped up prices on Tuesday.
Gains in China’s stock market added to the bullish tone, as concerns about demand from the region have pressured prices in previous sessions.
SOYOIL prices settled higher on Tuesday, tracking gains in Malaysian palm oil.
SOYMEAL closed mixed on Tuesday.
CORN futures closed about four cents per bushel stronger on Tuesday, as gains in global stock markets supported futures.
Rebounds in outside markets spurred hopefulness that demand for US corn could improve.
Investor short-covering was also bullish for corn.
WHEAT closed mostly unchanged on Tuesday, propped up by gains in the nearby corn market.
Investor short-covering also supported wheat prices, as did a recovery in global markets.
However high global supplies and weak demand limited gains.
– Cold weather in Ukraine, Belarus and some parts of Russia is putting crops at risk, analysts say.
– Japan is tendering for 132,432 tonnes of food wheat, market watchers say.
