By Dave Sims, Commodity News Service Canada
Winnipeg, May 8 (CNS Canada) – The ICE Futures Canada canola market posted gains on Tuesday, taking strength from a weaker Canadian dollar.
Soybeans on the Chicago Board of Trade were higher, which helped prop up the market.
Canola lagged the U.S. market by a few dollars amid low volume trade.
However, losses in soyoil dragged on prices.
Warm weather has helped farmers in Western Canada make a good jump on seeding.
Some traders were liquidating long positions, according to a trader in Winnipeg.
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Around 9,593 canola contracts were traded on Tuesday, which compares with Monday when around 8,353 contracts changed hands. Spreading accounted for 3,454 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market corrected higher on Tuesday following Monday’s sell-off.
U.S. exporters were feeling a bit of pressure after the value of the Argentine peso fell, making soybeans from that country more attractive.
The July contract rose above the technically-important US$10.20 per bushel level.
Corn futures finished higher after weather forecasts called for rain to hit a wide swath of the U.S. Corn Belt later this week, which helped support prices.
Around 39 percent of the crop in the U.S. is planted now, which is down five percent from the average.
Weekly corn export inspections were the second highest of the current marketing year, according to a report.
Chicago wheat futures finished higher in technical trading.
Temperatures in the U.S. Plains could hit 30 degrees Celsius or higher this week and little rain is in sight so the crop will likely remain in poor shape for the time being.
However, strength in the U.S. dollar weighed on the wheat market.
