By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 9 (CNS Canada) – ICE Futures canola contracts were lower on Monday, taking back much of Friday’s gains as a selloff in Chicago Board of Trade soybeans weighed on prices.
Speculators were noted sellers, booking profits to start the week as global trade concerns were overhanging the agricultural markets.
However, canola lagged soybeans to the downside. Hot and dry conditions across much of the Prairies were being followed closely, providing some underlying support.
Weakness in the Canadian dollar, as it retreated from early gains, also helped temper the declines.
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About 10,102 canola contracts traded, which compares with Friday when 13,093 contracts changed hands. Spreading accounted for 1,040 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were down sharply on Monday, seeing a profit-taking correction after Friday’s rally. Traders are still working on getting a better handle on what Chinese tariffs on soybeans from the United States will mean going forward.
Relatively favourable Midwestern growing conditions also weighed on values, although hot temperatures in the nearby forecasts have the potential to cause some damage.
The U.S. Department of Agriculture reported private export sales of 132,000 tonnes of U.S. soybeans to unknown destinations this morning.
The USDA’s monthly supply/demand report will be released on Thursday, with adjustments to the tables due to the China/U.S. trade war expected.
CORN was weaker, taking some direction from soybeans. Global trade concerns and the generally good Midwestern weather added to the softer tone in corn.
Weekly U.S. corn export inspections came in at nearly one and a half million tonnes. That was down a bit from the previous week, but still strong overall and well above what was reported during the same Fourth of July holiday week last year.
WHEAT futures were down across the board, with seasonal harvest pressure accounting for some of the weakness in the winter wheats as the U.S. harvest moves steadily northwards.
Poor export demand also weighed on values, with U.S. wheat export inspections running well behind last year’s pace.
However, production issues in parts of Russia and Europe provided support. In addition, all of Kansas is now in a state of drought, raising concerns over moisture reserves going forward.
