By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Feb. 13 (CNS Canada) – ICE Futures Canada canola contracts were narrowly mixed at Tuesday’s close, backing away from earlier gains in the final minutes of trade.
Gains in Chicago Board of Trade soybeans and soymeal futures provided spillover support for most of the day. Declining production prospects out of Argentina were especially supportive for CBOT soymeal futures given concerns over tightening supplies of the protein-rich livestock feed. However, canola usually tracks soyoil more closely than soymeal, and losses in that market tempered the upside in the Canadian oilseed and contributed to the late selloff.
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Farmer selling also came forward at the highs to weigh on values, according to a trader.
About 31,459 canola contracts traded on Tuesday, which compares with Monday when 24,034 contracts changed hands. Spreading accounted for 21,510 of the contracts traded.
SOYBEANS
Soybean futures at the Chicago Board of Trade were up Tuesday, seeing some follow-through buying after yesterday’s rally.
Hot and dry weather conditions are forecast to continue to cause problems for soybeans in Argentina this week, with private forecasters lowering their production estimates.
Argentina is a major soymeal exporter, and concerns over the supply situation for the livestock feed and resulting rally in the futures pulled beans up as well.
Supportive technical signals contributed to the gains, as the March contract broke above the psychological US$10 per bushel mark yesterday.
However, profit taking at the highs did put some pressure on values. Relatively favourable Brazilian production prospects also limited the upside in soybeans.
CORN
Corn futures were steady to slightly lower at the close. Corn briefly climbed higher in sympathy with soybeans, but ran into resistance at the highs as traders took profits and the recent strength in the market also brought in more farmer selling.
Losses in wheat were also bearish for corn.
WHEAT
After posting solid gains yesterday, wheat was due for a bit of a profit-taking correction. Forecasts calling for some welcome moisture in parts of the Southern US Plains also weighed on prices.
However, conditions remain dry for the most part, which kept some caution in the futures.
