By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 16 (CNS Canada) – ICE Futures Canada canola closed stronger on Tuesday.
Canola advanced, but one investor called trade “dull” moving into the growing season.
Bullish fundamentals underpinned the commodity amid a lack of fresh news. Stocks of canola are expected to be tight moving into the spring, while seeding is happening at a slightly slower pace so far this year.
Spillover support from the Chicago Board of Trade soybean market added to canola’s upside.
Around 10,169 canola contracts traded on Tuesday, which compares with Monday when around 9,782 contracts changed hands. Spreading accounted for 3,898 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up by six to 11 cents per bushel on Tuesday, as chart-based short covering and solid export demand provided support.
The USDA reported a sale of 132,000 tonnes of US soybeans to ‘unknown destinations’ this morning, which accounted for some of the day’s buying interest.
The US soybean crop was 32 per cent seeded as of this past Sunday, which is right in line with the average for this time of year, according to the weekly USDA report.
SOYOIL futures settled near unchanged on Tuesday.
SOYMEAL futures were stronger on Tuesday.
CORN futures in Chicago settled within half a cent of unchanged on Tuesday, as early losses brought in some bargain hunting demand.
Favourable weather over the past week allowed US farmers to make great seeding progress, with 71 per cent of the corn crop in the ground, according to the weekly USDA report. That’s up one percentage point from the five-year average.
However, emergence is still running behind normal, and forecasts call for wetter weather later this week.
WHEAT futures in Chicago were steady to up one cent in the most active contracts on Tuesday, as the market bounced off of the three-week lows hit earlier in the session.
The US winter wheat crop was rated 51 per cent good-to-excellent in the latest weekly report, which was down two points from the previous week and compares with 62 per cent good-to-excellent at the same point a year ago.
Spring wheat in the country was 78 per cent seeded as of Sunday, which is up five points from the five-year average.