By Dave Sims and Phil Franz-Warkentin
Winnipeg, March 2 – THE ICE Futures Canada canola market finished stronger on Monday, with speculative buying interest behind some of the gains.
Advances in European rapeseed futures as well as weakness in the Canadian dollar also lent support to canola prices.
A trucking dispute in Brazil has caused disruptions to soybean shipments, which underpinned the market. There are suggestions some international buyers may shift their attention to other sources until the dispute is over.
However, losses in the US soy complex and Malaysian palm oil were bearish for canola and limited the gains.
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…
Around 24,952 canola contracts were traded on Monday, which compares with Friday when around 30,465 contracts changed hands.
Spreading accounted for 14,682 of the contracts traded.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade were down by 12 to 18 cents per bushel on Monday, as concerns over a truckers’ strike in Brazil subsided.
While protesting truck drivers were still blocking some roads in Brazil on Monday, many routes were being cleared as the government has promised some conciliatory measures.
The record large South American production prospects remained a bearish influence as well, according to participants. However, excessive rainfall in some parts of Brazil was leading to harvest delays, which was a bit supportive.
SOYOIL futures were down on Monday, retreating from earlier advances as the losses in soybeans spilled over to weigh on prices.
SOYMEAL futures were lower on Monday, posting the biggest declines of the soy complex.
CORN futures in Chicago were steady to down by three to six cents per bushel on Monday, with heavy deliveries against the March contract behind some of the weakness. Declines in crude oil were also bearish for corn, as traders expressed concern over declining demand for ethanol.
Losses in soybeans and wheat contributed to the softer tone in corn. Chart-based selling was also a factor, as corn values moved below nearby support levels.
The three US wheat futures markets finished nine to 13 cents per bushel lower on Monday, as the US continued to miss out on export opportunities.
After making a purchase of US wheat last week, Egypt failed to buy any US wheat in its latest tender and was instead sourcing from Russia and Ukraine. A stronger tone in the US dollar was also making US grain less attractive to international buyers.
Good snow-cover across much of the US Plains and Midwest put further pressure on wheat values, as spring draws nearer and concerns over winterkill continue to subside.
– World wheat production in 2014/15 is forecast at 719 million tonnes, which would be up by 2 million from an earlier forecast, according to updated estimates from the International Grains Council. Production in 2015/16 is pegged at 705 million tonnes, which would be down slightly from an earlier forecast.
– France’s winter wheat crop is rated 90% good-to-excellent, according to a report from the country. That compares with only 73% in that category at the same point a year ago.
– Unseasonably heavy rains across northern parts of India may hurt wheat yields in the region, according to officials with the Indian Institute of Wheat and Barley.
