By Dave Sims, Commodity News Service Canada
Winnipeg, January 9 (CNS Canada) – Canola contracts on the ICE Futures Canada platform finished mostly stronger on Tuesday, propped up by speculative buying.
Gains in vegetable oil were supportive for canola.
There are some concerns about the lack of snow-cover in parts of Saskatchewan and Alberta.
Traders were positioning themselves ahead of Friday’s USDA report.
However, weakness in U.S. soybeans was bearish for canola.
Looming rain in parts of Brazil is expected to improve growing conditions for soybeans.
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Around 18,891 canola contracts were traded on Tuesday, which compares with Monday when around 16,790 contracts changed hands. Spreading accounted for 15,566 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended two to three cents weaker on ideas that Brazil’s soybean production could increase.
Rain is expected to fall in Brazil, which was bearish.
Analysts expect soybean export numbers will be lowered in Friday’s USDA supply and demand report.
Concerns about dryness problems in Argentina and the reappearance of commercial longs in the market lent some support to prices.
Corn futures rose one cent on Tuesday in technical trade.
Brazil’s first corn crop was pegged at 27.7 million tonnes by a private analyst. That was significantly lower than a previous estimate.
There are some indications that farmers in the U.S. are preparing to dump more supplies onto the market.
The wheat market chalked up gains on the day, rising four cents a bushel on short-covering.
There are expectations that the USDA will project a four per cent reduction in planted wheat acres in Friday’s report.
Worries about frost damage in Kansas are being reported, which was was bullish.
