Winnipeg Commodity Exchange canola futures rallied on Tuesday on export-related buying and as the Canadian dollar plunged, raising hopes for more export deals, traders said. Canola settled $3.40 to $5.50 per tonne higher, with January up $5.50 at $471, March up $5 at $482.60 and November up $4.90 at $479.20.
Fresh talk about a new cargo sold to China provided support, traders said. Traders pegged total recent sales at 3 to 3.5 cargoes. No sales could be confirmed. The Bank of Canada cut its key overnight lending rate on Tuesday for the first time since early 2004 by 25 basis points to 4.25 percent, sending the Canadian dollar down by as much as 1.3 percent against the US currency.
The Canadian dollar was at 98.78 US cents (C$1.0124), down from 99.98 US cents (C$1.0002) on Monday. Patient farmer selling helped the market make gains. "They've seen this level before and they're holding out for better prices," a trader said. At the Chicago Board of Trade, January soyabeans settled 12-3/4 US cents per bushel higher at US $10.91-1/2 and January soyaoil was up 0.13 US cent per pound at 45.93 US cents.
Spread trade included 2,340 January/March trading from $11.50 to $2, 377 January/July from $27.40 to $29.10, 267 March/November from $2.20 to $5.60, premium March, and 183 July/November from $18.60 to $20, premium July. Canola volume was estimated at 12,733 contracts, down from a total of 16,268 on Monday.
Traders did not expect significant changes in Statistics Canada's final crop report, slated for release on Thursday. Trade estimates averaged 8.9 million tonnes, and ranged from 8.3 million to 9.5 million tonnes. Statscan last pegged the crop at 8.864 million tonnes on October 4. Barley futures were supported by strength in CBOT corn, although patient end-user buying limited gains, a trader said.
March barley was up 40 cents per tonne at $197 with July up $2.50 at $210 and October up $2 at $196. Volume was 211 contracts, up from 79 on Monday. That included 40 May/July spread trading at $4.50 and 55 July/October from $13.90 to $14, premium July. Feed wheat futures did not trade.