By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, December 7 – THE ICE Futures Canada canola market suffered losses Monday, partially caused by a weaker US soy complex but also feeling the pinch of bearish macro-economic factors. Markets across North America were under widespread pressure today.
The key support level of C$470 per tonne held its ground throughout the majority of today’s session, but finally gave way while approaching the close.
Canola was also still reeling from Friday’s Statistics Canada report, which pegged 2015/16 canola production at 17.2 million tonnes, a much higher figure than expected.
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Speculators were net buyers last week but that has now changed to a net short position, according to a report.
Brazilian soybean fields are expecting to receive rain, which should alleviate concerns over excessive dryness.
However, the Canadian dollar was sharply lower relative to its US counterpart, which typically makes canola more attractive to out-of-country buyers. At one point the loonie was near its lowest position in 11 years.
Malaysian palm oil hit its highest price in a month and European rapeseed futures were both higher which helped support canola.
Around 31,253 canola contracts were traded on Monday, which compares with Friday when around 54,708 contracts changed hands. Spreading accounted for 26,538 of the contracts traded.
Milling wheat, barley and durum were untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed 22 to 24 cents per bushel lower on Monday as markets positioned ahead of a stockpile report from the United States Department of Agriculture (USDA).
Forecasted rain is expected to improve crop conditions in Brazil, which is bearish.
The newly-elected Argentinian president is expected to cut export taxes on soybeans, which added to the bearish tone as it could make US soybeans less competitive.
SOYOIL prices settled weaker on Monday, pressured by lower energy prices.
SOYMEAL closed weaker on Monday, tracking nearby grain and oilseed markets.
CORN futures closed seven and a half to eight and a half cents per bushel weaker on Monday, as the market ran out of steam after a rally.
Positioning ahead of Wednesday’s report and weakness in the nearby wheat market further added to the bearish tone.
WHEAT closed one to two cents per bushel weaker on Monday, as high supplies and low demand weighed on prices.
Positioning ahead of the USDA report also pressured prices.
However, investor short-covering limited losses.
– There were 114 wheat deliveries overnight, analysts say.
– Jordan has bought about 650,000 tonnes of wheat this year, according to reports out of the country.
