By Dave Sims, Commodity News Service Canada
Winnipeg, February 6 (CNS Canada) – The ICE Futures Canada canola complex finished higher on Tuesday, as the selloff affecting stock markets around the world doesn’t appear to be influencing canola.
“We didn’t enjoy the run-up so we’re not suffering from the drop,” noted a trader in Winnipeg.
Recent weakness in the Canadian dollar has made canola more attractive to out-of-country buyers.
The front-month March contract temporarily broke through the psychologically-important C$500 per tonne mark.
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Gains in the U.S. soy complex underpinned the market.
However, traders were positioning themselves ahead of Thursday’s
USDA supply/demand report.
Buying has been spotty and China seems to be sitting on the sidelines for now.
Around 37,224 canola contracts were traded on Tuesday, which compares with Monday when around 31,596 contracts changed hands. Spreading accounted for 31,826 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade chalked up gains on Tuesday, taking strength from ideas that rains this week in Argentina will fall short of expectations.
The average trade estimate for U.S. soybean ending stocks is at 486 million bushels, which compares to the previous estimate of 470 million.
Technical buying was also a feature of the session.
The corn market finished higher on Tuesday, fueled by demand for livestock feed and ethanol.
Most analysts expect to see U.S. ending stocks decline in Thursday’s report.
The U.S. sold 120,000 tonnes of corn to Japan.
Chicago wheat finished stronger in speculative buying.
Traders covered shorts, which was supportive.
Some snow is forecast to fall on parts of the U.S. Plains, which should help improve soil-moisture conditions.
