ICE Futures canola contracts were higher on Monday, underpinned by advances in the Chicago soy complex.
- European rapeseed futures were also sharply higher on the day, with end-user bargain hunting after prices hit 16-month lows last week providing support. Reports that a Bunge-owned crusher in eastern Ukraine was damaged by a Russian attack also supported rapeseed values.
- Geopolitical uncertainty following the capture of Venezuelan President Nicolas Maduro by the United States over the weekend kept some caution in global markets, including the agricultural commodities.
- Bullish chart signals contributed to the gains in canola, with the March contract extending its move above C$600 per tonne after briefly testing that support level on Friday.
- Canada exported 121,000 tonnes of canola during the week ended Dec. 28, which was up by 26 per cent from the previous week, reported the Canadian Grain Commission. Crop-year-to-date canola exports of 2.66 million tonnes compare with 4.53 million tonnes by the same time the previous year.
- Large supplies and a lack of export demand from China continued to overhang the canola market.
- There were 38,105 contracts traded on Monday, which compares with Friday when 28,320 contracts changed hands. Spreading accounted for 14,238 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were stronger Monday.
- Follow-through speculative buying after Friday’s correction off nearby lows was supportive.
- Oilseed processors in the United States crushed 6.62 million tonnes of soybeans in November, reported the National Oilseed Processors Association after Friday’s close. That was down from 7.09 million tonnes the previous month, but above the 6.3 million tonnes crushed the same month the previous year.
- Large South American production prospects weighed on values, with the harvest in its early stages in Brazil.
- Analysts StoneX raised their forecast for Brazil’s soybean crop by 0.2 per cent from December to 177.6 million tonnes. Some analysts have pegged production at as much as 180 million tonnes.
- Uncertain geopolitical tensions following the U.S. capture of Venezuelan President Nicolás Maduro kept some caution in the grains and oilseeds.
CORN futures were also higher, with positioning ahead of next week’s monthly supply/demand estimates from the U.S. Department of Agriculture behind some of the activity.
- Pre-report trade guesses calling for a downward revision to average corn yields in next week’s report.
- Export demand for U.S. corn remains relatively solid.
WHEAT futures were stronger on Monday, with the ongoing war between Russia and Ukraine a background feature to the trade.
- Advancing harvest operations in Argentina and Australia, remained a bearish influence.
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