By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 11 (CNS Canada) – ICE Futures Canada canola contracts posted small losses on Monday, as improving Prairie weather conditions and losses in Chicago Board of Trade soybeans weighed on values.
Recent price activity has shifted the technical bias to the downside, and fund traders could be looking to move to the short side of the market after recently exiting their long positions, according to a broker.
Sporadic rainfall across much of Western Canada was also bearish, as crops are generally thought to be in good shape.
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However, there are still enough areas of concern across the Prairies to provide some underlying support.
The Canadian dollar was weaker on Monday, which also helped temper the declines.
About 38,163 canola contracts traded, which compares with Friday when 22,551 contracts changed hands. Spreading accounted for 14,492 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Monday. Good weather conditions across the Midwest accounted for some of the selling pressure, as widespread rainfall over the weekend was generally beneficial for crop development.
Ongoing trade disputes also weighed on values. The United States is still at odds with China, while U.S. President Donald Trump exaggerated tensions with Canada and other G7 nations over the weekend.
The weekend rains across the Corn Belt were also bearish for CORN, with bearish technical signals adding to the losses in that market.
However, solid weekly export inspections were a bit supportive for corn.
The U.S. Department of Agriculture releases its monthly supply/demand report on Tuesday, July 12, and positioning ahead of the data was a feature.
WHEAT futures were all lower, with the advancing U.S. winter wheat harvest behind some of the selling pressure.
Some dry regions of Australia saw much needed rainfall over the weekend, helping take some of the weather premiums out of the wheat market.
However, many major wheat growing areas of the world remain hot and dry.
