By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, Feb. 2 – THE ICE Futures Canada canola market finished stronger Tuesday, taking strength from gains in the US soy complex along with currency issues.
The Canadian dollar was down four tenths of a cent relative to its US counterpart, which made canola more attractive to international buyers.
Malaysian palm oil futures recorded their biggest increase in six weeks, which was bullish for canola. European rapeseed futures were also higher.
The March contract continues to find support at the C$470 per tonne mark.
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However, on the other side of the coin losses in crude oil were bearish for canola. Commercial demand is somewhat sluggish right now.
It appears South America could soon be selling large supplies of soybeans.
Around 28,736 canola contracts were traded on Tuesday, which compares with Monday when around 30,197 contracts changed hands. Spreading accounted for about 18,916 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed about five to seven cents per bushel stronger on Tuesday, supported by US export inspections data.
Data released by the United States Department of Agriculture indicate strong demand for US soybeans, which is bullish.
India is expected to have limited supplies of soybeans, market watchers say, which also supported prices on Tuesday.
Concerns about the quality of Argentina’s crop further buoyed prices.
SOYOIL prices settled higher on Tuesday, tracking Malaysian palm oil.
SOYMEAL closed higher on Tuesday, tracking soybean futures.
CORN futures closed about one to two cents per bushel stronger on Tuesday, gathering strength from chart based support levels.
Analysts say commercial demand is strengthening, which could also support prices in coming sessions.
WHEAT closed mostly unchanged on Tuesday, as Egypt rejected a cargo of wheat.
Egypt rejected a cargo of French wheat after finding ergot, a fungus which can affect cereal crops.
Egypt then cancelled a tender on Tuesday, citing a lack of offers.
Egypt is the top-importer of wheat.
However, investor short-covering limited losses on Tuesday.
– Iran has sufficient wheat supplies, according to reports, and will be shutting down foreign wheat imports after March 20.
– South Dakota’s winter wheat crop has been reported as mostly healthy.
