By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 2 – The ICE Futures Canada canola market posted substantial gains on Tuesday, following bullish action in vegetable oil.
The Canadian dollar was down a fifth of a cent compared to its US counterpart, which made canola more attractive to domestic crushers and foreign buyers.
Tightening canola stocks across Western Canada helped support prices.
Slow farmer selling was also supportive, according to a trader in Winnipeg.
“Farmers are getting busier, there’s less attention on the market which is helping July and November rebound,” he said.
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However, losses in US soybeans undercut prices.
Large soybean exports from South America were bearish for the market.
Around 18,547 canola contracts were traded on Tuesday, which
compares with Monday when around 12,488 contracts changed hands.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed up one to down two cents per bushel on Tuesday, pressured by the latest United States Department of Agriculture (USDA) crop progress report.
The report showed about ten per cent of soybeans have been planted so far this year, which compares with a five-year average of seven per cent.
However, that data doesn’t account for a slew of wet weather several states in the US got this weekend, which capped losses in deferred contracts.
SOYOIL prices closed higher on Tuesday.
SOYMEAL closed weaker on Tuesday.
CORN futures were three to five cents per bushel lower on Tuesday, as USDA crop progress data showed seeding in-line with the five-year average.
Though, adverse weather in parts of the US limited the bearish effects.
Profit taking after steady gains in the previous session was also a feature.
WHEAT closed one to two cents per bushel weaker on Tuesday in consolidation-based trade following sharp advances in the previous session.
Concern about crop conditions in the US, following snow in key growing regions during the weekend could underpin values in coming sessions.
