By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 25 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Monday, taking some direction from a selloff in the Chicago Board of Trade soy complex.
The ongoing trade dispute between the United States and China kept the U.S. grains and oilseeds under pressure to start the week, and the resulting speculative selling also spilled into the canola market, according to participants.
Large old crop supplies and expectations that this year’s planted canola area ended up above earlier expectations contributed to the declines. Statistics Canada releases updated acreage estimates on Friday.
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However, canola lagged soybeans to the downside, finding some independent strength on the back of solid export demand. Dryness concerns in parts of Western Canada and a softer tone in the Canadian dollar were also supportive.
About 27,012 canola contracts traded, which compares with Friday when 25,282 contracts changed hands. Spreading accounted for 12,916 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were down sharply on Monday, as international trade tensions were heightened over the weekend by news that the United States was planning on placing even more restrictions on Chinese investment into U.S. technology.
Relatively favourable Midwestern crop conditions also weighed on prices, although localized flooding was reported in some areas.
The USDA reported an export sale of 186,000 tonnes of soybeans to unknown destinations, which provided some underlying support.
CORN was also pressured lower by the good Midwestern weather and ongoing trade concerns. Positioning ahead of Friday’s acreage and stocks reports from the U.S. Department of Agriculture was a feature.
Average expectations are for a slight increase in U.S. corn seedings from earlier estimates.
WHEAT futures were lower, as dry regions in Australia received some much needed moisture over the weekend.
The advancing U.S. winter wheat harvest also weighed on values, although rain delays were slowing the harvest pace in some areas.
Spring wheat regions of the northern U.S. and Canada are in good shape overall, although dryness is becoming a concern.
