By Marlo Glass, MarketsFarm
WINNIPEG, Jan. 7 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished stronger on Tuesday, making up for losses incurred during the previous trading session.
A weaker Canadian dollar was supportive of canola prices. At midday, the dollar slipped just below 77 U.S. cents, due to a comparably stronger U.S. dollar and weakness in crude oil values.
Despite a bias to the upside, canola prices have remained largely locked in a consolidation pattern. One trader said some producers may be holding on to inventory until prices improve.
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On Tuesday, 19,204 contracts were traded, which compares with Monday when 22,025 contracts changed hands. Spreading accounted for 14,268 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were mixed on Tuesday, staying relatively competitive in comparison to other vegetable oils.
South American soybean growing conditions have improved recently, and are favourable for crop development. Some private estimates are calling for record large soy production in the region this year. However, traders are still watching for dry conditions in some growing regions.
India has informally asked palm oil refiners to avoid buying Malaysian palm oil following Malaysian criticism of India’s new citizenship laws. As the world’s biggest buyer of palm oil, inventories could spike in Malaysia, putting pressure on prices.
CORN futures finished slightly lower today. One private company has lowered their estimate for Brazil’s corn production, due to challenging growing conditions. Parts of Brazil received excessive rains in November, which delayed planting. Hot and dry growing conditions in December have negatively impacted crops as well. Corn production estimates have been lowered by a million tonnes to total 100 million.
However, estimates for Argentina’s corn crop remain at 47.5 million tonnes.
WHEAT futures were mixed on Tuesday. Wheat shipments from the U.S. totalled 1.89 million bushels in November, which was a 15.5 per cent decrease from October. However, wheat shipments are 10 per cent higher on the year compared to the same time in the previous marketing year.
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