By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, February 7 – THE ICE Futures Canada canola market settled higher on Tuesday, taking strength from moves in the Canadian currency.
The Canadian dollar was about half a cent weaker relative to its US counterpart, which made canola more enticing to domestic crushers and foreign buyers.
Slow farmer selling was a feature of the day, according to a trader in Winnipeg.
“Most farmers were sitting on their hands with targets above the market,” he explained.
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Commercials engaged in some light buying while gains in US soybeans and Malaysian palm oil underpinned the market.
However, losses in Chicago Board of Trade soyoil and crude oil were bearish for values.
Investors were also looking ahead to Thursday’s report from the USDA.
Milling wheat, barley and durum were untraded.
About 25,852 canola contracts traded on Tuesday which compares with Monday when 19,920 contracts changed hands. Spreading accounted for about 18,990 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 six cents per bushel on Tuesday, as solid export demand continued to provide support.
Chinese buyers were said to be showing good demand, as they continue to make up for last week’s Lunar New Year holiday.
However, offshore demand is expected to eventually shift to South America, which kept a lid on the advances as conditions remain relatively favourable in the continent.
SOYOIL futures settled lower on Tuesday, seeing a modest correction after posting solid gains during the previous session. Positioning against soymeal added to the declines.
SOYMEAL futures were stronger on Tuesday.
CORN futures in Chicago were up by four to five cents per bushel on Tuesday, with chart-based buying a feature as prices recovered off of nearby lows.
News of a fresh 128,000 tonne sale to Japan contributed to the gains.
However, the looming South American crops did limit the advances.
WHEAT futures in Chicago were up by three to eight cents per bushel on Tuesday, seeing a recovery following Monday’s losses.
Positioning between the three US wheat markets was a feature, with the Chicago and Kansas City contracts gaining some ground back on the Minneapolis spring wheat futures.
Ample world wheat supplies remained a bearish influence overall, limiting the upside.
