By Terryn Shiells, Commodity News Service Canada
Winnipeg, April 15 – ICE Futures Canada canola contracts closed higher on Tuesday, lifted by speculative buying as the market broke above key resistance of C$470 per tonne in the May contract, analysts said.
Spillover support from the advances seen in the CBOT soy complex also underpinned the futures, as did weakness in the value of the Canadian dollar.
Worries about cold weather delaying planting in the US and Canada and concerns surrounding political problems in Ukraine added to the bullish tone.
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Some talk that Oklahoma’s winter canola crop may have been damaged by below-freezing temperatures overnight was also supportive.
However, ongoing expectations of large carryout stocks of canola this year and reports that farmers will increase acreage of the crop this spring were bearish.
About 17,226 canola contracts were traded on Tuesday, which compares with Monday when 14,053 contracts changed hands. Spreading accounted for 10,788 of the trades made.
Milling wheat, durum and barley futures were untraded, though the Exchanged adjusted wheat and barley prices after the close on Tuesday.
SOYBEAN futures at the Chicago Board of Trade closed eight to 25 cents US per bushel higher on Tuesday, with the May contract breaking above the key US$15.00 per bushel level.
Some of the strength was linked to better than expected crush data from the National Oilseed Processors Association (NOPA), analysts said. NOPA reported 153.84 million bushels of soybeans were crushed in the US last month, beating expectations of 146.1 million bushels.
Concerns about political problems in Ukraine, along with worries that US planting will be delayed this spring by cold temperatures, also lifted the market. Steady commercial demand and tight supplies added to the bullish tone.
However, pressure from the advancing harvest in South America and expectations of a large 2014/15 US soybean crop were bearish. Concerns about slowing Chinese demand also limited the gains.
SOYOIL futures were higher on Tuesday amid spillover from the gains in soybeans and positive domestic crush data from the National Oilseed Processors Association, traders said.
SOYMEAL futures also moved higher in reaction to the strong domestic crushing data, brokers noted.
CORN futures in Chicago settled little changed after chopping around on both sides of unchanged on Tuesday, finishing one cent lower to one cent higher. The market was said to be consolidating following recent gains.
Worries about problems in Ukraine and wet weather causing planting delays in the US provided some support, as did spillover from the gains seen in soybeans and wheat, market watchers said.
On the other side, reports that planting isn’t ahead of last year’s pace in the US were bearish, as were forecasts calling for improved weather in the next few days.
WHEAT futures in the US ended stronger, as ongoing worries about political problems in Ukraine were bullish. The political turmoil may reduce both exports and production of wheat in Ukraine, analysts said.
Minneapolis, Chicago and Kansas City futures all finished between 15 and 24 cents US per bushel higher.
Concerns that below-freezing temperatures seen in some US growing regions overnight may have damaged winter wheat crops were also bullish.
However, forecasts calling for improved weather for US winter wheat crops in the longer term helped to limit the gains, as did the large global supply situation.
• According to the USDA, six per cent of the 2014/15 US spring wheat crop has been planted, which was up slightly from five per cent last year. They also said 34 per cent of the US winter wheat crop was in good to excellent condition, down from 35 per cent a week prior and 36 per cent last year.
• Egypt has enough supplies of wheat to last until June 19, the country’s supplies minister said.
• The Food and Supplies Department in Haryana, a state in northern India, said they have purchased 492,000 tonnes of wheat so far this year, while millers in the region have bought 8,720 tonnes.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
