By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, February 16 – THE ICE Futures Canada canola market finished higher in choppy trading Tuesday, pushed upward by currency issues and gains in Chicago soybeans.
The Canadian dollar was lower relative to its US counterpart, which made canola more attractive to out-of-country buyers.
The market continues to correct off recent lows which was supportive for canola on the charts.
Rain is forecast for Brazil which could hamper harvesting efforts for soybeans.
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On the other side, losses in Chicago soyoil, US crude oil, and Malaysian palm oil were bearish for values.
The harvest of soybeans in South America also pressured prices as there are expectations they will be hitting the market very soon.
Milling wheat, durum and barley were all untraded and unchanged.
Around 30,482 canola contracts were traded on Tuesday, which compares with Friday when around 30,160 contracts changed hands. Spreading accounted for about 25,096 of the contracts traded.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade were up by two to six cents per bushel on Tuesday, as concerns over harvest delays in South America provided some support.
Forecasts calling for heavy rainfall in parts of Brazil over the next week are expected to slow harvest operations in the country.
Speculative short-covering contributed to the gains, amid ideas that the net short position held by commodity funds had become too big.
However, yield reports out of South America still look very large overall and the looming harvest (despite any short-term delays) remained a bearish influence in the background.
SOYOIL settled lower on Tuesday, with adjustments to the soyoil/soymeal spread behind some of the activity.
SOYMEAL futures were higher on Tuesday.
CORN futures in Chicago settled two to four cents per bushel higher on Tuesday, as chart-based short-covering and Brazilian weather concerns underpinned the market.
Advances in wheat provided some spillover support for corn as well, although declines in crude oil did limit the upside potential in the ethanol-linked grain.
WHEAT futures in Chicago were up by five to six cents per bushel on Tuesday, as prices continued to see some recovery after hitting multi-year lows last week.
Ample world wheat supplies and the continued lack of demand for expensive US wheat kept the advances in check.
– Egypt cancelled a tender for a third time in the past month over the weekend.
– The Canadian Wheat Board Alliance is calling on the federal government to bring back the CWB and restore the single desk for marketing Western Canadian wheat and barley. The group says Prairie farmers have lost billions of dollars in the absence of the single desk.
