By Dave Sims and Phil Franz-Warkentin
Winnipeg, March 23 – THE ICE Futures Canada canola market finished stronger on Monday, pushed upwards by speculative buying and spillover gains in the US soy complex.
Advances in European rapeseed futures and Malaysian palm oil were also supportive.
Some traders were forced to liquidate contracts today after being caught in long positions they had started building since the beginning of the month, an analyst said.
However, the Canadian dollar was stronger against its US counterpart which was bearish for prices as it made canola less attractive on the international market.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
As well, expectation of a massive South American soybean harvest also undermined the market.
Around 24,611 canola contracts were traded on Monday, which compares with Friday when around 14,221 contracts changed hands. Spreading accounted for 15,870 of the contracts traded.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade were up by seven to 10 cents per bushel on Monday, seeing some follow-through buying interest after Friday’s rally as speculators continued to cover short positions.
A weaker tone in the US dollar contributed to the buying interest in soybeans, as the softer currency was said to be making exports look more attractive to international buyers.
On the other side, the large South American supplies remained a bearish influence in the background as those beans will eventually compete with US stocks in the export market.
SOYOIL futures were higher on Monday.
SOYMEAL futures were higher on Monday, following soybeans.
CORN futures in Chicago were up by three to five cents per bushel on Monday, as the corn market also benefited from the weakening US currency.
Expectations that corn will lose some acres to soybeans this year were also supportive, as market participants were busy adjusting positions ahead of the USDA’s March 31 acreage estimates report.
WHEAT futures in Chicago were up by 3 to 6 cents per bushel on Monday, hitting fresh one-month highs e back of the weaker US dollar.
Dryness concerns in parts of the US Plains added to the firmer tone, with many areas in need of moisture as the winter wheat crop leaves dormancy. Weather problems in Russia were also cited as a supportive factor in wheat.
– The European Union issued export licenses for 780,000 tonnes of soft wheat during the past week, bringing the total during the crop year to date to 23.7 million tonnes. That compares with 21.9 million tonnes at the same point the previous year.
– Bangladesh has issued a tender to purchase 100,000 tonnes of wheat, according to reports.
– The Kansas Wheat Commission is investing US$200,000 towards research into gluten sensitivities, with the possibility of eventually breeding gluten-free wheat, according to an Associated Press report.
