By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Oct. 19 – ICE Futures Canada canola contracts settled with small losses on Monday, after bouncing around in choppy rangebound dealings throughout the session.
Speculators were on both sides of the market throughout the day, with no real bearish or bullish news pushing prices too far one way or the other, according to participants.
Losses in Chicago soybeans and soyoil did put some spillover pressure n canola. Rising production ideas for both the US soybean crop and he Canadian canola crop were also said to be somewhat bearish.
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On the other side, a softer tone in the Canadian dollar, which was down by over half a cent relative to its US counterpart, was somewhat supportive.
Solid demand from domestic crushers and exporters also helped underpin canola, said traders.
About 25,204 canola contracts were traded on Monday, which compares with Friday when 24,015 contracts changed hands.
Milling wheat, durum, and barley were all untraded, although wheat prices were revised lower after the close.
SOYBEAN futures at the Chicago Board of Trade closed four to seven cents per bushel lower Monday as the US harvest continued.
Favourable weather in the US has been bearish for the oilseed as farmers are adding to domestic stocks.
Expectations that well-timed rains will hit Brazil over the course of the week added to the bearish tone.
A lack of rain in Brazil had been threatening to hamper production within the country, which is a competing exporter.
SOYOIL prices settled lower on Monday, tracking Malaysian palm oil.
SOYMEAL closed lower on Monday following neighbouring grain and oilseed markets.
CORN futures closed three to four cents per bushel weaker Monday, pressured by the US harvest and a lack of fresh news.
Analysts say farmers haven’t shown much market interest, however storage is filling up and they may have to sell soon, despite not liking current prices.
WHEAT closed six to eight cents per bushel weaker on Monday, as rain hit two wheat growing regions, which is favourable to winter wheat production.
The US Plains and competing post-Soviet states have seen rain over the past few days.
Losses had been limited by dryness in those growing regions, so the news was especially bearish.
However, market watchers say wheat prices may have notched a low, and could move higher in coming sessions.
– Russia has exported 9.12 million metric tonnes of wheat as of Oct 14, according to country’s agriculture minister.
– Additionally, Russia’s exports are expected to edge up this year, while Canada and the EU will likely see declines, a representative from the European Commission said.
END
