By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 1 (MarketsFarm) – The ICE Futures canola market was stronger on Tuesday, finding spillover support from a rally in the Chicago Board of Trade soy complex.
Chart-based buying contributed to the gains, as speculators adjusted positions and added to their long positions.
Ongoing concerns over tight old crop supplies remained supportive for canola as well, although demand was being rationed at current price levels.
Canola did run into some resistance to the upside, settling off its highs for the session.
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About 25,511 canola contracts traded on Tuesday, which compares with Monday when 18,072 contracts changed hands. Spreading accounted for 14,314 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade hit fresh contract highs in many months on Tuesday, seeing a continuation of Monday’s rally.
Production uncertainty in South America accounted for some of the strength, with a number of forecasters lowering their projections for the continent.
The United States Department of Agriculture reported private export sales of 132,000 tonnes of soybeans to China this morning for delivery in the new crop year.
Brazil’s harvest is estimated to be about 11 per cent complete, up from only 1.4 per cent at the same time a year ago.
CORN also found support from declining South American production prospects.
The USDA reported private export sales of 110,000 tonnes of corn to Mexico this morning, adding to the firmer tone.
WHEAT was stronger, recovering from yesterday’s losses in ‘Turnaround Tuesday’ activity.
The ongoing tensions between Russia and Ukraine remained supportive, as the two countries are major world wheat exporters.
Declining condition ratings for U.S. winter wheat were also supportive, with only six per cent of the Texas crop in the good to excellent category in a report out of that state.
