By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 23 (MarketsFarm) – The ICE Futures canola market was stronger on Monday, seeing a correction to start the week amid ideas Friday’s losses were overdone.
Gains in Chicago Board of Trade soyoil futures provided underlying support, with chart-based buying adding to the advances. The November contract fell below its 20-day moving average during Friday’s selloff, but retested that chart point on Monday.
Widespread rains across Western Canada over the weekend delayed harvest activity, which added to the firmer tone in canola.
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However, sharp gains in the Canadian dollar, which was up by more than a cent relative to its United States counterpart, served to keep a lid on the upside.
About 14,943 canola contracts traded on Monday, which compares with Friday when 23,514 contracts changed hands. Spreading accounted for 6,556 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, recovering some of Friday’s losses as activity in outside markets spilled over to provide some support.
Broad gains in crude oil and general weakness in the United States dollar were especially supportive for soyoil, which helped pull beans up as well despite losses in soymeal.
However, soybeans ran into chart resistance to the upside and were off their session highs by the close.
Traders were uncertain what to make of weekend rains across the Midwest. While the moisture may help yields in some cases, it was also seen as coming too late to provide much benefit at this stage of development.
CORN retreated from early gains to post small losses, with the weekend rains definitely beneficial for corn crops in the Dakotas.
The declines came despite spillover from soybeans and wheat, and solid export demand.
The U.S. Department of Agriculture reported private export sales of 458,000 tonnes of corn to Mexico this morning.
WHEAT was stronger across the board, with the weaker U.S. dollar making exports more attractive for global buyers. Tightening supplies of good quality wheat internationally added to the firm tone. Rain delays for the spring wheat harvest were also supportive.
Weekly U.S. wheat export inspections at around 660,000 tonnes were up by 100,000 from the previous week, with China accounting for roughly a quarter of the business.
