By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, March 14 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Tuesday, seeing some follow-through fund selling after Monday’s declines.
Speculators were noted sellers as values moved below some nearby chart support levels.
Losses in Chicago Board of Trade soybeans contributed to the weaker tone in canola, according to traders.
However, the underlying fundamentals remain somewhat supportive for canola. Solid demand from both exporters and domestic crushers, together with expectations for tightening supplies going forward, helped temper the declines, said a broker.
Late gains in CBOT soyoil and a weaker Canadian dollar also provided some support, with crush margins improving by about C$5 per tonne on the day.
About 20,082 canola contracts were traded on Tuesday, which compares with Monday when 13,398 contracts changed hands. Spreading accounted for 11,312 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed six to nine cents per bushel weaker on Tuesday, feeling pressure from favourable harvest weather in Brazil.
The expectation for seasonal demand for South American products also had a bearish effect on prices.
Strength in the US dollar added to the downside, as it makes American commodities less appealing to international buyers.
The May contract has dropped below the psychologically-important ten US dollar per bushel mark, but has stayed above support.
SOYOIL prices closed stronger on Tuesday, tracking Malaysian palm oil.
SOYMEAL closed weaker on Tuesday.
CORN futures closed about one cent per bushel higher on Tuesday.
Solid demand including a sale of 120-thousand tonnes to Mexico also had a bullish effect on the market.
However, chart trends indicate that the grain’s momentum is lower, which could further pressure the market in coming sessions.
WHEAT closed about one cent per bushel lower on Tuesday, pressured by a stronger US dollar and high global supplies.
Technical-selling was also a feature, market watchers say.