By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, June 13 (CNS Canada) – ICE Futures Canada canola contracts finished lower on Tuesday, dragged down by strength in the Canadian dollar. Buyers on the international market typically find canola less attractive when the Canadian dollar is stronger, relative to its US counterpart.
Western Canada is expected to see more rain this week, which was bearish as it is expected to help the crop develop.
Weakness in Malaysian palm oil contributed to the losses.
Large supplies of soybeans in South American were also bearish for canola.
However, the US soy complex was stronger, which helped underpin canola.
Canola stocks are tight in Canada, which was supportive.
Planting efforts in some parts of Alberta and Saskatchewan are still behind schedule.
About 34,425 canola contracts traded on Tuesday, which compares with Monday when 18,777 contracts changed hands. Spreading accounted for 19,240 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were unchanged to about one cent per bushel higher on Tuesday, rebounding after yesterday’s declines.
On Monday soybeans saw double-digit losses, which spurred some recovery-based trade.
Ideas that seeding progress will be slower moving forward also supported prices on Tuesday.
However, mostly-favourable crop condition ratings limited the market’s upside.
SOYOIL prices closed stronger on Tuesday.
SOYMEAL closed weaker on Tuesday.
CORN futures closed about three to four cents per bushel higher on Tuesday, rebounding after losing more than two per cent in the previous session.
Reports of slow farmer selling were also bullish for the market.
Lower crop condition ratings added to the upside.
WHEAT closed about ten to 11 cents per bushel stronger on Tuesday.
The Chicago wheat market was tracking sharp advances in the Minneapolis futures, which gained more than 27 cents per bushel on Tuesday.
Weak crop condition ratings and concern about crop health further supported values.