By Phil Franz-Warkentin and Dave Sims, Commodity News Service
Winnipeg, Nov. 16 – ICE Futures Canada canola contracts managed to settle with small gains in the most active months, after posting losses for most of the session.
Bearish chart signals, and the resulting speculative selling, had kept the early bias to the downside in canola, according to traders who said speculators were adding to their growing net-short positions.
However, the selling pressure dried up as the day progressed and a turn higher in the Chicago soy complex helped pull canola above unchanged late in the day as well.
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…
A weaker tone in the Canadian dollar, which was flirting with the 75 US cent level throughout the day, provided some further support as the softer currency should make exports more attractive to international buyers. A lack of significant farmer selling was also cited as a supportive influence.
About 16,799 canola contracts were traded on Monday, which compares with Friday when 14,076 contracts changed hands. Spreading accounted for 8,050 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although wheat prices were revised after the close.
SOYBEAN prices ended 4 cents per bushel higher on choppy trading Monday, partially lifted by reports that China has booked an order for 180,000 metric tonnes of US soybeans.
Technical trading and a surge in the crude oil market were also supportive for prices.
However, favourable weather conditions are expected this week in Brazil which is expected to aid the crop.
Soyoil finished 27 points higher, taking strength from gains in crude oil.
SOYMEAL futures dipped slightly, with spreading against soyoil a feature.
Wheat futures on the Chicago Board of Trade dipped 1 to 2 cents per bushel Monday, as favourable weather conditions across the US central plains are expected to aid the crop.
US export demand has been dismal due to strength in the US dollar, which makes wheat from other countries cheaper to buy.
Warm temperatures and scattered rain showers are expected across parts of the Black Sea region which should help Russian and Ukrainian winter grains.
Corn futures on the Chicago Board of Trade posted modest gains to start the week. The market was buoyed by a report that Mexico has ordered 1.4 million metric tonnes of corn. The corn market drew some strength from the advances in crude oil, according to a trader.
US weekly inspection numbers were bullish. According to the USDA, 374,000 metric tonnes was inspected the previous week, compared to 296,000 the week previous.
– An extreme heat wave is expected across parts of New Zealand and Australia this week which is expected to stress wheat crops in those two countries, according to a report.
– Jordan has purchased 100,000 tonnes of wheat in a tender.
END
