By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, Nov 24 – ICE Futures Canada canola contracts ended slightly higher after a day of quiet, choppy activity on Monday.
Some of the strength was linked to spillover support from the advances seen in Chicago soyoil futures, analysts said.
The downswing in the value of the Canadian dollar was also bullish, as it made canola more attractive to foreign buyers.
Further support came from a continued lack of significant farmer selling in Western Canada, as they wait for the new tax year and stronger prices.
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However, spillover pressure from the weakness in Chicago soybeans helped to limit the advances.
The large US soybean crop and good conditions for South American beans were also bearish for canola.
Activity was on the quieter side, as about 17,296 contracts changed hands on Monday, which compares with Friday when 16,417 contracts traded.
Milling wheat, durum and barley futures were all untraded on Monday, though the Exchange made slight adjustments to wheat and barley after the close.
Corn futures in Chicago moved five cents per bushel lower Monday, undermined by slow buying by large funds and spillover pressure from soybeans.
The outlook for ethanol markets is also uncertain due to volatility in the energy market, according to a report.
The US harvest is estimated to be 93 percent wrapped up, according to guesses by analysts ahead of late Monday’s USDA crop progress report.
Values may continue to consolidate lower due to speculative trading and farmer hedge pressure, traders said.
SOYBEAN futures in Chicago corrected five to six cents per bushel lower Monday after chalking up modest gains the previous few days.
There are expectations Monday’s USDA report will show nearly the entire US soybean crop has been harvested, which were bearish.
Favourable rains in South America also pressured values, said participants.
SOYOIL futures were higher on Monday, with spreading against soymeal a feature.
SOYMEAL futures ended lower with “flat” spreads according to participants.
WHEAT futures in Chicago settled four to five cents per bushel lower, and one to two cents per bushel lower on the Kansas City Board of Trade, due to spillover selling in corn and soybeans and recent strength in the US dollar which discouraged some international sales of US wheat, said market-watchers.
Demand for US wheat is lukewarm due to fierce international pricing and competition, according to a report.
Quality issues are emerging with Argentinian wheat which is lending support to US wheat values, brokers said. Frigid temperatures in the US plains have raised worries over possible winterkill in the new crop as well.
– Farmers in Argentina are expected to harvest 12 million tonnes of wheat in the 2014/15 crop year, according to a report.
– Romania’s gross wheat exports were pegged at 1.14 million metric tonnes in August, according to the country’s statistics office.
– France has won its sixth tender in a row from Egypt as the Middle Eastern country purchased 60,000 tonnes of wheat recently.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
