By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, Nov. 2 – ICE Futures Canada canola contracts settled with small losses in the most active months on Monday, as losses in the CBOT soy complex were enough to keep the bias to the downside at the close.
Canola traded to both sides of unchanged throughout the day, lacking any clear direction. Speculators and commercials were on both sides of the lightly traded market, according to participants.
Ample nearby supplies in the commercial system, together with ideas farmers likely harvested a larger crop than the current official estimates, contributed to the softer tone.
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However, chart support held to the downside in canola, with solid end user demand and a weaker tone in the Canadian dollar also underpinning the futures.
The January contract tested nearby support at C$471.00 per tonne, but managed to settle well above that chart point.
About 10,309 canola contracts were traded on Monday, which compares with Friday when 14,515 contracts changed hands. Spreading accounted for 5,222 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 closed six to eight cents per bushel lower Monday as rain in Brazil eased concerns about the country’s soybean production.
Rain in Brazil’s key soybean growing regions, the central and northwest parts of the country, improves the outlook for next year’s crop.
However, data showing strong Chinese demand for the oilseed capped losses.
SOYOIL prices settled lower on Monday tracking Malaysian palm oil.
SOYMEAL closed lower on Monday, following nearby grain and oilseed markets.
CORN futures closed five to six cents per bushel weaker on Monday as the ongoing US harvest pressured prices.
The near-complete harvest means more crops will be added to domestic stocks, which is bearish.
A lack of demand for US corn further added to the bearish tone.
WHEAT closed ten to 14 cents per bushel weaker on Monday as beneficial rains fell in several key growing regions.
Winter wheat in Russia and the US had been seeded into dry soil, giving wheat some support in previous sessions.
– Reports out of Australia say the country’s wheat quality may be downgraded due to rain.
– India has planted half the amount of wheat it did in 2014, according to a research organization from within the country.
