By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 28 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Monday, although activity was thin and choppy with markets in the United States closed for Memorial Day.
Scattered thunderstorm activity across many areas of Western Canada over the weekend accounted for some of the selling pressure in canola, according to participants. However, some areas received too much rain while others remain on the dry side.
Weakness in crude oil also spilled over to weigh on international vegetable oil markets, adding to the softer tone in canola.
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The Canadian dollar was weaker, moving below 77 U.S. cents, which provided some underlying support for the futures.
About 6,971 canola contracts traded, which compares with Friday when 14,850 contracts changed hands. Spreading accounted for 3,690 of the contracts traded.
U.S. markets were all closed for Memorial Day, after ending last week on a strong note.
Weather conditions across the country should remain at the forefront of the market when activity resumes on Tuesday, with the drought in the Southern Plains likely to keep wheat well supported. Dryness in other wheat growing regions of the world, including Russia and Australia, remain supportive for wheat in the background as well.
Conditions for soybeans and corn in the Midwest are more of a mixed bag. Rains in some areas over the weekend likely caused seeding delays for the crop still left to go in the ground, but the moisture should be beneficial for the fields already planted.
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