WINNIPEG – The ICE Futures canola market ended the day in positive territory on Tuesday, due to spillover from a rally in the Chicago soy complex.
Chicago soyoil and Malaysian palm oil were both higher, while European rapeseed was lower at close. Crude oil made small gains limited by rising interest rates at central banks and a weakened global demand outlook.
At mid-afternoon, the Canadian dollar was two-tenths of a United States cent higher than Monday’s close.
About 25,481 canola contracts were traded on Tuesday, which compares with Monday when 28,988 contracts changed hands. Spreading accounted for 17,098 of the contracts traded.
Read Also
ICE review: Canola corrects higher Wednesday
ICE canola futures were stronger on Wednesday, taking back Tuesday’s losses as the market continued to consolidate above the five-month…
While trade activity declines on the Chicago Board of Trade (CBOT) as the holiday season approaches, CORN prices ended a two-day string of losses on Tuesday.
Growing conditions seem favourable for Brazilian corn, while there is also a chance of showers in dry corn-growing areas of Argentina. Dr. Michael Cordonnier of Soybean and Corn Advisor Inc. in Hinsdale, Ill. recently left his corn production estimates for both countries unchanged.
Corn struggled to find a foothold on which to rally as exports from the U.S. are at a slower pace than last year and ethanol demand has been hit by declines in plant margins and fuel demand over the past month.
After double-digit losses on Monday, SOYBEAN prices made a full recovery on Tuesday, fuelled by rising soyoil and soy meal.
While rains are forecast for Argentina late this week, dry conditions will remain for soybean crops in Argentina and in southern Brazil. Dr. Cordonnier lowered his Argentine soybean production estimate to 45 million tonnes.
Meanwhile, the mounting number of COVID-19 infections and deaths in China is raising concerns about demand.
WHEAT prices made gains on Tuesday as winter weather awaits for much of the U.S.
Winter wheat crops are being threatened by a blast of Arctic air projected to travel from the U.S. Northwestern Plains to the Texas Panhandle on Thursday. Depending on snow coverage, southern wheat areas may also be hit with winterkill.
Japan is seeking more than 141,000 tonnes of Canadian and U.S. wheat, while Taiwan is tendering for 56,000 tonnes of U.S. milling wheat.
