By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 13 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, taking some direction from activity in outside markets.
Chicago soyoil, European rapeseed and Malaysian palm oil futures were all higher on the day, providing spillover support. However, strength in the Canadian dollar was a bearish influence, tempering the upside potential.
Canola settled well off its highs for the day, as the early gains were thought to be overdone from a chart standpoint.
About 35,613 canola contracts traded on Tuesday, which compares with Monday when 36,939 contracts changed hands. Spreading accounted for 23,742 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, with broad weakness in the United States dollar internationally behind some of the strength as the softer currency makes exports more attractively priced to global buyers.
The U.S. Department of Agriculture announced private export sales of 140,000 tonnes of soybeans to unknown destinations this morning.
While Argentina saw some moisture over the past weekend, the rains weren’t enough to seriously alter the drought conditions in the country, with forecasts calling for more hot and dry weather going forward.
CORN was also supported by the weak U.S. dollar but failed to hold onto its gains by the close and settled with small losses in the most active months.
Declining production estimates out of Ukraine and the weather concerns in Argentina were supportive. However, the dryness in Argentina could see some intended soybean acres shift into corn instead.
Mexican and U.S. officials are reportedly set to meet later this week to discuss a looming import ban in Mexico on genetically modified corn.
WHEAT was mixed, with Chicago soft wheat turning lower by the close while the Minneapolis and Kansas City hard wheats posted advances.
Russia’s agriculture ministry is now placing this year’s wheat crop in the country at 80 million to 85 million tonnes, down from its earlier forecast of 91 million tonnes.
Reports out of France show winter wheat area running slightly ahead of last year’s level.
