By Dave Sims, Commodity News Service Canada
Winnipeg, January 23 (CNS Canada) – The ICE Futures Canada canola complex trended slightly higher on Tuesday, taking strength from advances in U.S. soyoil and Malaysian palm oil futures.
The market also took strength from an Informa Economics report that lowered its forecast for U.S. soybeans to 91.2 million tonnes.
Dry weather in Argentina was also supportive for canola.
Fowever, canola is becoming somewhat expensive relative to other oilseeds and buying has been lukewarm.
“Unless we get a new resurgence of Chinese buying – I don’t get the sense that there’s a lot of interest,” said a Winnipeg-based analyst.
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Around 15,088 canola contracts were traded on Tuesday, which compares with Monday when around 16,710 contracts changed hands. Spreading accounted for 10,844 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended two cents higher in a choppy session on Monday.
The market was down for much of the morning as United States President Donald Trump’s decision to slap tariffs on Chinese solar panels raised fears this could be the start of another trade war.
However, futures took strength from the Informa Economics report that lowered the forecast for U.S. soybeans to 91.2 million tonnes.
U.S. export inspections were also better than expected at 1.4 million tonnes.
The corn market finished the day roughly a cent lower in tight, chart-based trading.
A disappointing U.S. export inspections report continued to weigh on the market. The inspections were actually slightly higher than last week but still 32 per cent lower than the same point last year.
Demand for corn is reasonable right now but futures are still locked in tight, range-bound trade.
Chicago wheat fell four cents in speculative selling on Tuesday.
The snow that fell on parts of Colorado and Kansas was welcome news for farmers worked about excess dryness. That being said much of the U.S. Plains could do with a lot more.
Russian wheat prices have risen over the past few weeks, making U.S. supplies more competitive, said an analyst.
