By Dave Sims and Jake Markus, Commodity News Service Canada
Winnipeg, November 8 – THE ICE Futures Canada canola market finished higher on Tuesday, tracking grains in the US soy complex.
Advances in vegetable oil also supported canola.
Speculative buying was a feature, according to a trader in Winnipeg.
However, a recent wave of warm weather in Western Canada helped farmers harvest more canola, which was bearish for prices.
The Canadian dollar was slightly higher relative to its US counterpart, which made canola less attractive to international buyers.
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The analyst said more losses could be coming soon.
“Outside markets could move tonight post-election,” said the analyst adding, “Tomorrow’s USDA report is looking for higher soybean yields and production, so that could sour this thing pretty quickly.”
Milling wheat, barley and durum were untraded.
About 24,340 canola contracts traded on Tuesday, which compares with Monday when 16,336 contracts changed hands. Spreading accounted for about 10,128 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed six to 13 cents per bushel higher on Tuesday, underpinned by a round of short-covering amid talk that the commodity had become oversold.
Strong export demand for the oilseed added to the upside, market watchers say.
Spillover strength from the nearby soy oil market furthered gains.
Investors were moving into position ahead of the results of the US presidential election and Wednesday’s United States Department of Agriculture (USDA) data.
SOYOIL prices were stronger on Tuesday, following overnight advances in Malaysian palm oil.
SOYMEAL closed stronger on Tuesday.
CORN futures were seven to eight cents per bushel higher on Tuesday, tracking soybean’s advances.
Rain is expected to delay France’s corn harvest, which is bullish.
WHEAT closed four to six cents per bushel stronger on Tuesday, bouncing back after declines in the previous session.
Spillover support from the soybean and corn markets helped wheat prices on Tuesday.
Concerns about production and quality issues in Western Canada added to the advances.
