By Jade Markus and Erin DeBooy, Commodity News Service Canada
ICE Futures Canada canola ended higher on Tuesday, following advances in the Chicago Board of Trade soybean market.
CBOT soybeans gained with losses in the US dollar, but traders say long-liquidation is still happening, which could add to the declines in coming sessions.
Commercial bargain-buying was another source of support in the canola market, traders say.
Malaysian palm oil closed higher overnight, which added spillover support to canola.
However, advances in the Canadian dollar against its US counterpart limited gains on Tuesday.
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Generally-favourable crop conditions in Western Canada also limited upside potential.
About 15,848 canola contracts traded on Tuesday, which compares with Monday when 22,694 contracts changed hands. Spreading accounted for about 1,352 of the contracts traded.
Barley was untraded and unchanged, while milling wheat and durum were revised lower after the close.
Settlement prices are in Canadian dollars per metric tonne.
CORN futures fell on Tuesday with favourable US data.
Prices for the September contract dropped to US$3.3250 per bushel on reports the US corn crop is better than expected, according to the USDA.
Despite a heat wave across the Midwest, corn ratings remain well above average for this time of year, renewing speculation that farmers could produce a record crop this year.
SOYBEAN futures at the Chicago Board of Trade strengthened on Tuesday.
Prices for the August contract rallied to daily highs of more than US$10 per bushel before settling at US$9.9325.
US soybean crops are in good shape at the moment, however traders are not convinced of a warmer forecast in August for the Midwest, limiting gains.
SOYOIL prices closed stronger on Tuesday, with the August contract settling at 29.56 US cents per pound.
SOYMEAL closed stronger on Tuesday.
WHEAT closed lower on Tuesday after climbing for three straight sessions.
The September contract closed at US$4.1500 per bushel, settling slightly above the daily low of US$4.1400.
French wheat is currently priced out of the global market after spring floods damaged harvests and pushed up local prices, limiting losses.
However, the damage in France won’t lead to global shortages, and bigger-than-expected harvests in Russia should cancel out crop losses in Europe.
– Wheat imports have soared in Thailand after the government waived import tariffs in 2014, according to a Commerce Ministry report. This year, wheat imports could surge to more than 5 million tonnes, up from 3.46 million tonnes last year.
– While issues with wheat crop in France have hurt yields, European soft wheat prospects overall were raised 0.03 tonnes a hectare to 6.10 tonnes, according to reports. This leaves yields 4.6 per cent over the five-year average, although down 2.9 per cent year-on-year.
