By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Jan. 10 (CNS Canada) – ICE Futures Canada canola contracts were narrowly mixed at Tuesday’s close, recovering from earlier losses in the final minutes.
After drifting lower with chart-based selling for most of the session, canola managed to turn higher by the close to settle at the key C$500 per tonne mark in the most active March contract.
Gains in the Chicago Board of Trade soy complex accounted for some spillover strength in canola, as the rising soy futures helped the already wide canola crush margins grow even larger.
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However, uncertainty ahead of the USDA’s monthly supply/demand report, due out on January 12, kept some caution in the canola market. Expectations for large South American soybean crops weighed somewhat on values as well, according to participants.
About 15,204 canola contracts were traded on Tuesday, which compares with Monday when 10,240 contracts changed hands. Spreading accounted for 9,718 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed six to nine cents per bushel stronger on Tuesday, supported by technical buying.
Traders remain uncertain about South American crop conditions, which underpinned values.
Parts of Argentina are too wet, while areas in Brazil are dry, which is bullish.
Ideas that US exports will become slower moving forward as competing supplies emerge from South America limited the upside on Tuesday.
SOYOIL prices closed higher on Tuesday.
SOYMEAL closed higher on Tuesday.
CORN futures were one to two cents per bushel lower in positioning ahead of a key report from the United States Department of Agriculture.
The USDA is set to release its World Agricultural Supply and Demand Report on Thursday, and traders were profit-taking ahead of its release.
Strength in the US dollar added to the downside.
WHEAT closed mixed, but mostly unchanged, on Tuesday.
Spillover pressure from the corn market pushed front contracts lower.
Positioning ahead of USDA data due out later this week was also a feature.
