By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, March 29 – THE ICE Futures Canada canola market finished higher on Tuesday, as spillover gains in vegetable oil outweighed bearish action in the Canadian currency.
Malaysian palm oil continues to trade higher, building upon yesterday’s two year high. That strength has filtered into other vegetable oil markets including canola.
China has pushed back proposed changes to dockage allowance on canola imports. The original plan called for China to lower the amount of dockage it accepts on canola shipments beginning April 1st. But the new deadline is September 1st.
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End-user demand remains brisk which was supportive.
However, the Canadian dollar was roughly two-thirds of a cent higher relative to its US counterpart, which made canola less attractive to out of country buyers.
Farmer selling continues to stay brisk which was bearish for values.
Technical resistance has been pegged at C$480 a tonne in the May contract for the time being.
Crude oil was weaker which was bearish.
Around 34,272 canola contracts were traded on Tuesday, which compares with Monday when around 13,495 contracts changed hands. Spreading accounted for about 7,800 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed five to seven cents per bushel stronger on Tuesday, as traders anticipated an upcoming report from the United States Department of Agriculture.
Spill over support from wheat and Malaysian palm oil futures were also features on Tuesday.
Malaysian palm oil prices have climbed to fresh highs due to drought conditions in growing regions, market watchers say.
A softer US dollar added to the bullish tone.
SOYOIL prices settled higher on Tuesday, tracking Malaysian palm oil.
SOYMEAL closed stronger on Tuesday, tracking nearby grain and oilseed markets.
CORN futures closed one to two cents per bushel higher on Tuesday, propped up by technical trading.
Investors expect the USDA will increase its estimates for the amount of corn seeded this growing season, but some exited bearish bets to reduce their risks.
Spill over support from wheat was also a feature.
However a policy change from China limited gains on Tuesday.
Chinese officials say the market will now be setting corn prices, as opposed to the former price-controlled system.
WHEAT closed four to six cents per bushel stronger on Tuesday, as dry conditions in key growing regions of the US continued to lend support to prices. Dryness in the US Southern Plains puts that region’s crops at risk, which caused sharp gains on Monday, and continued its bullish influence on Tuesday.
Weakness in the US dollar added to the advances.
– Iraq is tendering for 50 thousand metric tonnes of wheat, market watchers say.
– Global quarterly stocks estimates for wheat are 238.77 million metric tonnes, analysts say.
