By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Aug. 29 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Monday, taking some direction from the losses in Chicago Board of Trade soybeans and soyoil.
The seasonal harvest pressure and concerns over the looming implementation of stricter Chinese dockage rules contributed to the softer tone in canola, according to participants.
Bearish technical signals were another factor, as the nearby bias has shifted to the downside.
However, early harvest results are coming in mixed across the Canadian Prairies, beating expectations in some cases and failing to do so in others. That was keeping some caution in the futures, as traders work to get a better handle on the size of the crop.
Read Also
North American Grain/Oilseed Review: Canola rises, down day for grains
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Friday despite weakness in most comparable…
Cooler temperatures, coupled with the likelihood of harvest delays in some areas due to excess moisture and slow maturity, also kept weather premiums in the futures.
About 15,698 canola contracts were traded on Monday, which compares with Friday when 15,013 contracts changed hands.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed one to seven cents per bushel lower on Monday, as the market turned its focus to seasonal selling-pressure.
Investors typically exit bullish positions into September, market watchers say, as harvest moves closer.
US crop tours say yields are likely to be ahead of year-ago levels, which further pressured the market.
Strength in the US dollar, which could undercut strong international demand for the oilseed, added to the bearish tone.
SOYOIL prices closed weaker on Monday, tracking overnight losses in Malaysian palm oil.
SOYMEAL closed mixed on Monday.
CORN futures were three to four cents per bushel lower on Monday, feeling spill over pressure from losses in the crude oil market.
Crude oil prices lost more than one per cent on Monday due to increased production.
That news is bearish for corn, as lower energy prices reduce the likelihood that processors will blend above mandated amounts of corn into biofuel.
Crop tours also show large yields for corn, which added to the bearish tone.
Weakness in the nearby wheat market was also a feature.
WHEAT lost ten to 13 cents per bushel on Monday, moving to a ten-year-low, as high global stockpiles pressured prices.
The International Grains Council upwardly revised its estimates for global wheat production, which is bearish.
Egypt has reintroduced its ban on grain shipments containing ergot, which added to the declines, as the country is the world’s biggest buyer of wheat.
Strength in the greenback could cut into international demand for US wheat, which furthered losses.
– Russian wheat exports are 13 per cent ahead of last year’s pace, market watchers say.
– Analysts say Kansas City wheat futures also hit a fresh low overnight.
END
