By Dave Sims, Commodity News Service Canada
Winnipeg, December 19 (CNS Canada) – Canola contracts on the ICE Futures Canada platform posted modest gains on Tuesday, reversing a recent push downward.
“We’re likely due for a balance going into Christmas,” said a trader in Winnipeg. “The shorts have luscious profits and it won’t take much prompting for them to cover.”
Weakness in the U.S. dollar was supportive for canola and there are still ideas the market is oversold.
Crush margins have been ticking upward recently, which was supportive.
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Gains in U.S. soyoil underpinned the market.
The market was still feeling the bearish effects of this week’s Agriculture and Agri-Food Canada report, which hiked the estimate for canola stockpiles to two million tonnes.
U.S. soybeans were weaker, which limited the gains.
Around 24,445 canola contracts were traded on Tuesday, which compares with Monday when around 36,009 contracts changed hands. Spreading accounted for 16,734 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade fell five cents lower on Tuesday due to forecasts calling for scattered rain in parts of Argentina as well as some technical selling.
The consulting firm Safras and Mercado lowered their soybean production estimates for Brazil to 114.6 million tonnes. That was 130,000 tonnes lower than their October forecast.
U.S. private exporters sold 145,000 metric tons of soybeans to unknown destinations.
Corn futures rose half a cent on Tuesday in light technical buying.
Large world supplies continue to keep the market in check.
Temperatures in Argentina are somewhat hotter than usual, which are worrying some farmers.
Wheat futures finished one cent lower on Tuesday, weighed down by large world supplies.
The overall fundamental picture for wheat remains bearish, however dryness concerns in the U.S. southern plains were slightly supportive.
Wheat export inspection numbers in the U.S. were higher than expected which helped prop up prices.
