By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, November 21 – ICE Futures Canada canola ended higher on Monday, underpinned by sharp gains in oilseed markets south of the border.
Chicago Board of Trade soybeans, soymeal and soyoil advanced, buoyed by speculative buying and spillover support from Malaysian palm oil.
Ideas that one million tonnes of canola will not be harvested this fall due to adverse weather added to the upside.
However, the Canadian dollar gained ground against its US counterpart on Monday, which capped some of canola’s strength.
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About 22,435 canola contracts traded on Monday, which compares with Friday when 11,716 contracts changed hands. Spreading accounted for about 11,742 of the contracts traded.
Milling wheat and durum were revised after the close, while barley was untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade were up sharply on Monday, posting gains of 16 to 26 cents per bushel.
Solid end-user demand accounted for some of the buying interest, with speculative buy stops hit on the way up adding to the gains.
Advances in crude oil, the weaker US dollar index, and solid weekly export inspections of 2.7 million tonnes, contributed to the strength in soybeans.
However, the large US crop and good South American seeding conditions tempered the advances.
SOYOIL futures were up on Monday, as advances in crude oil provided support.
SOYMEAL futures were up on Monday.
CORN futures in Chicago were up by three to four cents per bushel on Monday, taking some direction from the rally in soybeans.
The rally in crude oil was also supportive for corn, given the grain’s connection to ethanol production.
However, the burdensome US supply situation kept the advances in check.
WHEAT futures in Chicago were steady to up two cents on Monday.
Concerns over drought conditions in parts of the Southern Plains were supportive, while planted winter wheat acreage is also thought to be down on the year.
However, ample world supplies limited the upside potential in wheat.
