By Dave Sims, Commodity News Service Canada
Winnipeg, December 5 (CNS Canada) – Canola contracts on the ICE Futures Canada platform rose Tuesday, as traders engaged in speculative buying ahead of a major report.
Statistics Canada is due to release its final production estimates of the year on Wednesday. Many analysts predict the size of Canada’s canola crop will be just over 20 million tonnes, which would be slightly higher than last year’s 19.6 million tonne crop.
Dry conditions in Argentina and parts of Brazil are stressing soybean fields down there, which was supportive.
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Gains in U.S. soybeans helped give the market a boost.
However, weakness in vegetable oil markets was bearish for canola.
Large world supplies of soybeans dragged on prices.
Around 29,979 canola contracts were traded on Tuesday, which compares with Monday when around 15,532 contracts changed hands. Spreading accounted for 18,528 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade jumped nine to 10 cents on Tuesday.
Dry weather in Argentina has sparked ideas of lower yields in that country, which was supportive for the market.
Speculative buying was a main feature of the day’s activity.
A new estimate for the crop in Brazil pegs it at 107.6 million tonnes, which is about 1.5 million higher than the previous estimate.
Corn ended roughly half a cent higher in choppy, technical trading.
Some light buying happened in the morning after yesterday’s losses and corn took some strength from soybeans.
Some large funds have liquated their long positions, which was bearish.
Wheat futures finished two to four cents lower on Tuesday, weighed down by growing production estimates out of Argentina.
U.S. export inspections were down 6.7 percent from last week which was bearish.
Heavy rain in Australia has likely damaged that country’s wheat crop, which was supportive.
