Back to Main Morning Report: $CA Strength Pressures Canola

• Published: 2010-03-03 18:36:24

  CBOT May soybeans finished slightly firmer at $US9.63c/bu up $US1c/bu on the back of spread related trading. Tuesday saw soybeans bought and grains sold, which is the reverse of last weeks’ trade. The threat of rain during South America’s harvest is a minor supportive feature, but the predicted bumper crop outweighs any concerns of rain damage.
  
  High levels of snow melt are expected in the US mid west, which is underpinning corn values despite corn plantings being weeks away. The market is potentially range bound heading into next week’s supply and demand report closing down $US3c/bu at $US3.67c/bu.
  
  The $CA bounce is causing downward pressure to the canola futures markets. As the $CA strengthens, Canadian canola becomes less attractive for importers and domestic processes margins shrink. ICE May canola closed down $CA0.60c/t to $CA386/t. South America’s crop harvest continues to add bearish sentiment to the market as large global oil stocks rise. Short coverings and light commercial demand helped ease the price drop.
  
  CBOT May wheat experienced mostly modest corrective movement throughout the session ending unchanged at $US5.04c/bu. Wheat has been a follower of the corn and soy complex recently as the market lacks direction of its own. May wheat has maintained a support level at $US5.00c/bu which is US4c/bu lower than its 20 day moving day average.
  

  Tags: Oilseeds ,  Coarse Grain ,  Wheat , 

  

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