By Dave Sims, Commodity News Service Canada
Winnipeg, August 8 – THE ICE Futures Canada canola market chalked up gains on Tuesday, as strength in the Chicago Board of Trade soy complex pointed the way higher.
Vegetable oil markets were also stronger, which underpinned canola.
Slow farmer selling helped prop up values and the technical bias is pointed higher.
Some parts of Western Canada, particularly southern Alberta and southern Saskatchewan are damaged from this summer’s heat blast. It is doubtful rain will improve the situation significantly with harvest expected to begin later this month.
However, the North American oilseed crop is still expected to be massive this year, which limited the gains.
The Canadian dollar was slightly higher, compared to its US counterpart, which was bearish.
Around 7,682 canola contracts were traded on Tuesday, which
compares with Friday when around 6,564 contracts changed hands. Canadian markets were closed Monday for a civic holiday.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans finished one to three cents stronger in follow-through buying on Tuesday.
The weather outlook for the US Plains is somewhat uncertain, which lent some support to the market.
Brazil is reportedly planning to adjust its quota system for ethanol imports. The country will accept up to 600 million litres of ethanol with anything over that subject to a 20 per cent tariff.
On the other side, the market softened a bit after the USDA said that crop conditions in the US had increased by one percent. Sixty percent of the soybean crop is now considered good to excellent.
Corn ended two to three cents weaker in chart-based trading.
The US Corn Belt has seen milder over the past few weeks, which has enabled the crop to develop.
Resistance for the December contract has been pegged at US$3.91 a bushel.
Wheat suffered losses on Friday, falling five to six cents.
The USDA raised spring wheat condition ratings by one percent to 32 percent good to excellent, which weighed on prices.
The winter wheat harvest in the US is drawing to a close, with 94 percent of the crop taken off. That compares to just 88 percent last week.