By Dave Sims, Commodity News Service Canada
Winnipeg, February 20 (CNS Canada) – The ICE Futures Canada canola complex recorded gains on Tuesday, taking strength from advances in U.S. soyoil and weakness in the Canadian dollar.
Funds were engaging in short-covering and traders began taking new positions.
“Guys were rolling their positions forward from the March (contract) to the May, or just taking March off altogether,” said a trader in Winnipeg.
Crushers began buying more canola as their margins began to improve.
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However, farmer selling was bearish for values.
Canola acreage is expected to be very large in the spring.
Around 40,573 canola contracts were traded on Tuesday, which compares with Friday when around 25,676 contracts changed hands. Spreading accounted for 26,824 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market moved to its highest point in over half a year after weekend rains in Argentina failed to live up to expectations.
Strength in soymeal also helped bolster soybeans.
Many analysts expect Argentina’s crop to fall under 50 million tonnes.
Corn futures suffered modest losses on Tuesday, pressured by ideas the market was overbought.
Overhead resistance for the front-month March contract has been pegged at US$3.70 a bushel.
Corn export inspection numbers were in the mid-range of expectations at 938,000 tonnes.
Chicago wheat futures weakened on Tuesday, due to strength in the U.S. dollar.
Traders took profits, which weighed on futures.
Weekly wheat export inspections were on the low side of expectations.
