By Dave Sims, Commodity News Service Canada
Winnipeg, May 22 (CNS Canada) – The ICE Futures Canada canola market ended slightly higher on Tuesday, taking strength from gains in Chicago Board of Trade soybeans and soymeal.
Much of Canada’s canola crop could use more rain, which lent support to prices.
Technical buying was a feature as the canola market, which was closed yesterday, played catchup with U.S. oilseeds.
However, the Canadian dollar has been showing recent strength, which capped the upside.
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The November contract appeared to run into some technical resistance.
Around 12,609 canola contracts were traded on Tuesday, which compares with Friday when around 14,400 contracts changed hands. Spreading accounted for 3,618 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures finished higher on Tuesday, taking strength from speculation the United States and China are getting closer to a deal on trade issues.
A truckers’ strike in Brazil also lent strength to the market.
China continues to snap up soybeans from countries in South America, as its trade dispute with the U.S. continues.
In the United States, around 56 percent of the crop has been planted, which is well ahead of the 5-year average of 44 per cent.
Corn futures finished slightly higher in follow-through buying.
The U.S. corn crop is 81 per cent planted, which is about average for this time of year.
On the international scene, China announced it will sell eight million tonnes of corn next week.
Chicago wheat finished sharply higher on the day in speculative trading.
Continued dry weather in the U.S. Southern Plains underpinned the market.
The USDA says about 36 per cent of the crop in the U.S. is good to excellent, which is slightly behind what most analysts expected.
