By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Nov. 30 – ICE Futures Canada canola contracts were stronger on Monday, finding some spillover support from the CBOT soyoil market.
Canola had been losing ground to soyoil over the past few weeks, which left the Canadian oilseed due for a corrective bounce, according to a broker.
Steady commercial buying interest was also supportive, although farmer selling on the other side continues to come forward to meet any demand; keeping canola in a sideways range for the time being, said traders.
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The Canadian dollar was slightly firmer on Monday, which tempered the upside potential.
Statistics Canada releases its latest production estimates on Friday, December 4, and general expectations for a sizeable upward revision to the canola number were also bearish.
About 26,157 canola contracts were traded on Monday, which compares with Friday when 17,428 contracts changed hands. Spreading accounted for 22,212 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed six to eight cents per bushel higher on Monday as strong demand for the oilseed provided support.
Analysts say demand for US oilseeds has been shown by both foreign buyers and domestic processors.
However, competition from other growing regions capped gains, as did the recently finished US harvest.
SOYOIL prices settled stronger on Monday.
SOYMEAL closed higher on Monday following neighbouring markets.
CORN futures closed four to six cents per bushel stronger on Monday as the market positioned itself ahead of a key announcement from the Environmental Protection Agency (EPA).
The Environmental Protection Agency is expected to release its annual requirements for biofuel production, which could affect how much corn is processed into ethanol.
WHEAT closed five cents per bushel lower to five cents per bushel higher on Monday as weak demand and high domestic stocks pressured nearby contracts.
Spreading was also a feature in nearby wheat contracts as bigger-than-expected deliveries against the December contract were bearish for the commodity.
However, far contracts gained some support from a lack of rain in US growing regions—especially dry regions in the south.
– Ukraine’s winter crop is seeing slightly better conditions due to rain and warmer conditions, according to reports out of the country.
– Egypt’s supply minister said wheat imports will stay steady despite civil unrest.
