By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 24 (CNS Canada) – ICE Futures Canada canola contracts climbed to their highest levels in four months on Monday, as gains in Chicago Board of Trade soyoil and weakness in the Canadian dollar provided support.
That combination of rising soyoil prices and weakness in the Canadian dollar was causing crush margins to show considerable improvement on their already strong levels, according to participants.
The persistent weather issues in Saskatchewan and Alberta that continue to delay the final stages of this year’s harvest provided additional support, said traders.
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However, scale up hedge selling did limit the advances to some extent. Profit taking at the highs was also a factor.
About 53,615 canola contracts were traded on Monday, which compares with Friday when 23,599 contracts changed hands. Spreading accounted for 24,570 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were up by five to ten cents per bushel on Monday, as a rally in soyoil provided support.
Tightening global vegetable oil supplies pulled edible oil prices up around the world, with advances in Malaysian palm oil and Chinese soyoil helping take CBOT soyoil futures to some of their highest levels in two years.
A slightly weaker tone in the US dollar index was also supportive for beans.
Solid weekly export inspections were another supportive influence, with the USDA reporting weekly inspections of 2.7 million tonnes.
However, the advancing US harvest and expectations for a large crop did temper the gains.
SOYOIL futures were on Monday, hitting some of their best levels in two years as tightening world vegetable oil supplies provided support.
SOYMEAL futures were up on Monday, taking some direction from soybeans and soyoil.
CORN futures in Chicago were down by two to four cents per bushel on Monday.
While the rally in soybeans did provide some spillover support, corn was lacking any fundamental news of its own and drifted lower with wheat.
Harvest conditions remain great across most of the Midwest, with farmers thought to have made good progress over the past week.
Weekly US corn export inspections came in at 544,527 tonnes.
WHEAT futures in Chicago were down by nine to 12 cents per bushel on Monday.
Ample world wheat supplies accounted for some of the selling pressure, while bearish chart signals were another factor as prices retreated from nearby highs.
However, quality issues with the North American spring wheat crops did remain somewhat supportive. The Minneapolis spring wheatfutures lagged the Chicago and Kansas City winter wheat contracts to the downside.
