By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, January 17 – THE ICE Futures Canada canola market finished higher on Tuesday, tracking gains in US soybeans.
US soymeal was also much stronger, which was supportive for canola.
“Meal doesn’t normally contribute a lot to canola but when it’s up this much it is giving canola some support,” said a trader in Winnipeg.
Heavy rain in parts of Argentina raised ideas of crop losses, which was supportive for the market.
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Malaysian palm oil and European rapeseed futures were higher, which underpinned prices.
However, the Canadian dollar was three-quarters of a cent higher relative to its US counterpart, which made canola less attractive to foreign buyers.
Slight losses in Chicago soyoil were bearish.
Warm temperatures on the Canadian Prairies are expected to increase farmer selling.
Milling wheat, barley and durum were untraded.
About 25,439 canola contracts traded on Tuesday which compares with Monday when 5,667 contracts changed hands. Spreading accounted for about 13,202 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up by one to as much as 23 cents per bushel on Tuesday, with the largest advances in the front months as fresh weather concerns out of South America provided the catalyst for the rally.
Heavy rains in Argentina have hurt the soybean prospects, with the excess moisture expected to cut into both acres and the eventual production.
Weakness in the US dollar index provided additional support, according to participants.
However, the Argentinian forecasts are turning drier, while Brazilian crop conditions remain favourable overall.
SOYOIL futures settled with small losses on Tuesday, with spreading against soymeal the main factor as traders rolled out of their long positions in soyoil and short positions in soy meal.
SOYMEAL futures were up on Tuesday, with speculative short covering a feature.
CORN futures in Chicago were up by four to seven cents per bushel on Tuesday, also finding support from the excess rain in Argentina.
Roughly 10 per cent of the country’s corn crop is still unseeded, while the heavy rains may cut into the yields for those crops already in the ground.
WHEAT futures in Chicago were up by seven to 10 cents per bushel on Tuesday, finding some spillover support from the advances in corn and soybeans.
Wheat also continued to be underpinned by last week’s USDA report that placed US winter wheat plantings at their lowest level in over 100 years.
