By Dave Sims, Commodity News Service Canada
Winnipeg, November 7 – The ICE Futures Canada canola market posted modest gains on Tuesday, taking support from action in the Canadian currency.
“We are still in an up-trending channel,” said a trader in Winnipeg. “With the dollar going back down the canola market has popped back up.”
Advances in U.S. soybeans and soyoil underpinned canola.
The crush margins improved which was bullish for the market.
However, rains have been alleviating dryness problems in Brazilian soybean fields, which was bearish.
The most-active January contract has run into technical resistance.
Around 22,211 canola contracts were traded on Tuesday, which
compares with Monday when around 9,384 contracts changed hands. Spreading accounted for 14,954 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished one to two cents higher on Tuesday. The market was lifted by ideas the USDA will lower its estimate for U.S. soybean yields in Thursday’s supply and demand report.
According to the USDA, harvest progress in the US is estimated to be 90 percent complete, just slightly below the 5-year average of 91 percent.
In Brazil, soy processor Abiove pegged that country’s crop at 108.8 million tonnes, which was up slightly from a previous estimate of 108.5 million.
Corn ended roughly half a cent lower on Tuesday in choppy, directionless trade.
Strength in the U.S. dollar and continuing harvest pressure undermined the market slightly.
U.S. exporters secured a sale of 130,000 tonnes or corn to unknown buyers.
Wheat futures were three cents weaker in speculative trade.
Russian wheat export prices have trended lower recently due to stiff completion from other countries.
Winter wheat planting in the U.S. is 91 percent complete, which was mostly in line with the five-year average.