By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, September 14 – The ICE Futures Canada canola market finished stronger on Monday, enjoying spillover support from outside oilseeds and follow-through buying from Friday’s session.
Gains in Chicago soybeans helped to underpin canola along with strength in the vegetable oil market.
Short-covering was a feature of the day’s activity with the near-term November contract finding support around the C$470 (per tonne) mark.
Cold, wet weather in parts of Western Canada helped lift the market.
Read Also
ICE Midday: Canola returns to the red
Glacier FarmMedia – Canola futures on the Intercontinental Exchange traded lower on Thursday, losing yesterday’s gains on account of weakness in…
Seasonal harvest pressure was a bearish presence though and one trader felt today’s gains lacked staying power.
“It’s the time of year where we often find we can set some lows, and lows may have been put in these markets but it doesn’t mean the upside will be exciting. It may just mean we stop going down for now,” said the trader.
A total of 25,194 canola contracts traded on Monday, which compares with Friday when around 18,594 contracts changed hands.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed five cents per bushel lower to ten cents
Follow through buying kept far contracts supported.
However, higher than expected numbers on a US harvest report had a bearish effect on the lightly traded September contract.
SOYOIL prices settled higher on Monday.
SOYMEAL closed mixed on Monday, following neighbouring oilseed markets.
CORN futures closed four to six cents per bushel higher Monday, riding highs from a USDA report which reduced yield estimates.
Early yields from the Delta and Southeast US regions have been variable, market watchers say, which is bullish.
WHEAT futures in Chicago closed ten to 16 cents per bushel higher Monday, as reports of poor weather in Brazil supported prices.
Wheat crops in Brazil have been hit by frost at a critical point in the growing cycle, market watchers say.
Concerns over Brazil’s crops are especially bullish as the country imports high levels of wheat. If domestic stocks are low, they will be more active in the market, traders say.
However, analysts say wheat’s highs will likely be short-lived, as the most recent USDA report was bearish for the commodity, especially in the midst of a supply glut.
– Kazakhstan said it is lowering the amount of wheat exported
from eight million tonnes to seven million tonnes, which is
bearish.
– Bangladesh cancelled its tender to buy 50,000 tonnes of wheat,
analysts say.
