By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, July 18 – The ICE Futures Canada canola market ended higher on Tuesday, taking strength from gains in the US soy complex.
The market continues to be underpinned by hot weather conditions that have recently managed to push prices above the psychologically-important C$500 per tonne mark.
Fields in southern Saskatchewan and southern Alberta have been particularly affected by the heat blast that has blitzed the Prairies in the past few weeks. Many analysts say rainfall is needed soon before yields begin to fall too far.
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Gains in the US soy complex were supportive for canola.
However, the Canadian dollar was nearly half a cent higher compared to its US counterpart, which made canola less attractive to domestic crushers and out-of-country buyers.
Losses in Malaysian palm oil and prospects for large oilseed production in North America, limited the gains.
About 12,849 canola contracts traded on Tuesday, which compares with Monday when 7,943 contracts changed hands. Spreading accounted for 2,210 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed unchanged to about four cents per bushel higher on Tuesday, supported by data from the United States Department of Agriculture.
Crop conditions reported by the USDA were lower than the previous week, with 61 per cent of the crop in good to excellent condition.
The market was also underpinned by heat and a lack of rain in key growing areas of the US, which could further damage crops.
SOYOIL prices closed stronger on Tuesday.
SOYMEAL advanced on Tuesday.
CORN futures closed two to three cents per bushel higher on Tuesday, also propped up by crop condition ratings from the USDA.
The amount of the country’s grain that is in good to excellent condition fell one per cent to 64 per cent, which is well-behind last year’s level.
Ideas that yield potential in the US is declining added to the upside.
WHEAT closed two to four cents per bushel weaker on Tuesday.
Prices felt selling pressure as some market watchers think the premium the market has seen recently is overdone.
However, lingering concern about crop conditions in Canada and the US limited the market’s downside.
Minneapolis wheat futures continued to climb.
