By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, November 9 – THE ICE Futures Canada canola market chopped around on Monday, ultimately posting modest losses, as traders positioned themselves ahead of Tuesday’s USDA supply and demand report.
Weakness in US soyoil contributed to the downside while the Canadian dollar was firmer against its American counterpart, which made canola less desirable on the international stage.
Canola continues to stay rangebound, explained an analyst, with no clear direction as to where to go.
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“We’re stuck in no-man’s land,” he said.
However, strength in the CBOT January contract provided strength to the canola market, and helped limit the losses.
Gains in Malaysian palm oil were also bullish for canola.
Around 14,508 canola contracts were traded on Monday, which compares with Friday when around 9,069 contracts changed hands.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed mixed, but mostly lower on Monday as markets positioned themselves ahead of the USDA supply and demand report due out Tuesday.
Losses were limited in nearby contracts by the expectation of strong foreign demand, despite falling behind targets set by the government.
However, soybean contracts were largely lower as many traders expect the supply and demand report to show higher stocks.
SOYOIL prices settled weaker on Monday.
SOYMEAL closed lower on Monday following nearby grain and oilseed markets.
CORN futures closed lower on Monday, pressured by neighbouring wheat contracts and positioning ahead of the report.
Traders expect domestic corn stocks to be raised in the USDA report, which is bearish.
WHEAT closed lower on Monday as projections for rain in competing growing regions pressured prices.
Reports out of Russia and Ukraine said the regions were dry and market watchers were concerned about the effects that would have on wheat crops, which previously supported prices.
However, rain improves the outlook for those crops.
Positioning ahead of the USDA report further pressured prices, analysts say, as many expect the report to reflect high domestic stocks.
