By Dave Sims, Commodity News Service Canada
Winnipeg, Dec. 29 – The ICE Futures Canada canola market finished stronger Monday, as values rose in sympathy with soyoil.
It was an erratic day of trading for canola as investors worked to square their positions before the end of the year.
Flooding in Malaysia was bullish for canola values as analysts warned it could disrupt palm oil supplies which would in turn bolster demand for competing oils like canola.
Spillover buying in European rapeseed futures lent support to values as did commercial buying and slow farmer selling.
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However, improved prospects for development of the soybean
crop in South America, along with the large US soybean crop,
were bearish for values.
Around 22,542 canola contracts were traded on Monday, which
compares with Wednesday when around 19,150 contracts changed hands.
Spreading accounted for 10,968 of the contracts traded. The market was closed Thursday and Friday for Christmas and Boxing Day.
Milling wheat, durum, and barley were all untraded.
Corn futures in Chicago ended one to
two cents per bushel lower as farmer selling increased after
corn prices briefly reached their highest point in almost six
months Monday.
However, values received a boost from USDA figures that
show net sales to overseas markets reached 1.7 million metric
This exceeded earlier projections from analysts that called for
just 500,000 to 800,000 MMT to be delivered.
Corn planting is slowing down in Argentina. According to a
report, nearly 60% of the 7.2 million projected acres have been
seeded. That is approximately 5.5% less than the pace set last
year.
Soybean futures in Chicago dropped four to five cents per
bushel Monday.
Values started the day off strong, hitting their highest
point in six and a half weeks; however traders took profits
before markets closed, to push values lower.
The outlook for the soybean crop in South America is
generally favourable. However, a steady rainfall in parts of
Argentina and Brazil is starting to become a concern for some
analysts who worry excess moisture will begin to curtail
SOYOIL futures were 33 to 34 points higher Monday as
flooding in Malaysia threatened to curtail palm oil production,
according to a report. Analysts say this could drive up demand
for other alternatives like soyoil and canola oil.
SOYMEAL futures ended lower.
WHEAT futures in Chicago ended three to four cents per
bushel higher Monday as cold winter air moved into key growing
regions of the US and Russia.
Some areas of the central US have little snow to shield
them from colder temperatures that have begun to settle in. Some
snowfall is expected to arrive Monday night but some analysts
worry the cold air could potentially hurt the crop.
Iraq has purchased 200,000 metric tonnes of wheat from the
according to a report.
– Russian railroads have announced they will raise the tariff
on wheat exports by 13.4% beginning January 29, according
to a report.
– While Russia and the US are set to receive cold
temperatures this week scattered weather reports in Europe
indicate several grain-growing countries in that region
will also feel a chill in the coming days.
