By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 4 (CNS Canada) – ICE Futures canola contracts were stronger on Tuesday, taking some direction from the gains in Chicago Board of Trade soybeans and soyoil.
Speculative short covering and weakness in the Canadian dollar contributed to the firmer tone in canola, according to a broker.
However, losses in the outside equity markets and reduced optimism over the tentative trade truce between the United States and China put some pressure on values, with activity described as choppy and volatile.
The advances also encouraged some farmer selling, as producers look to empty bins and generate cash flow ahead of the New Year.
Statistics Canada releases its latest production estimates on Thursday, and pre-report positioning was a feature.
About 37,334 canola contracts traded, which compares with Monday when 24,661 contracts changed hands. Spreading accounted for 22,810 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were up on Tuesday, seeing some follow-through buying interest after Monday’s gains.
Good demand from the domestic crush sector was supportive, with the October crush hitting a record of 182.95 million bushels.
Ideas that the latest truce between the United States and China would result in more export business remained supportive for beans as well.
However, the promises have yet to result in anything tangible which kept some caution in the market.
Rising South American production prospects also kept a lid on soybeans.
CORN futures were stronger on the day, as early profit-taking proved short-lived and the market managed to follow soybeans higher.
Usage from the U.S. ethanol sector was up in October compared to the previous month, but below the year-ago level, according to a report.
Ongoing concerns over the African swine fever in China and the possibility of reduced feed demand in the country put some pressure on values.
WHEAT futures were narrowly mixed, seeing some consolidation after recent gains.
Speculative profit-taking was a feature, with no real fresh news to provide direction.
While U.S. wheat is thought to be looking more competitively priced on the world market, the country continues to miss out on export business.
Canola News |
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December 5, 2018 at 04:05PM
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