By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, Jan. 26 – The ICE Futures Canada canola market ended mixed after a day of quiet choppy activity on Monday. The March contract was lower, while May and July were higher, as traders worked to narrow the inverse in the market, analysts said.
Spillover support came from the gains seen in Chicago soybean futures, with steady end user demand also underpinning values.
Speculative based buying interest and recent weakness in the Canadian dollar were bullish as well.
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On the other side, spillover pressure came from the declines seen in Chicago soyoil futures.
Ongoing expectations of record large South American soybean production and a pick up in farmer selling in Western Canada were also bearish.
About 18,197 contracts changed hands on Friday, which compares with Friday when 26,440 contracts traded. Spreading accounted for 2,738 of the trades.
Milling wheat, durum and barley futures were all untraded. Though, the Exchange moved wheat prices lower following Monday’s close.
SOYBEAN futures in Chicago ended 10 to 12 cents per bushel higher Monday, with values enjoying spillover support from US soymeal.
Prices for soymeal in Argentina have risen substantially, due to weak crush margins, which has given US values a boost, said a trader.
Fears that some countries would cancel soybean deliveries appear to have subsided, which was supportive for prices.
Brazil continues to attract a lot of interest from buyers as expectations build it will see a record crop this year, according to an analyst.
SOYOIL futures ended 47 to 52 points lower, with spreading against soymeal a feature.
SOYMEAL futures ended higher on good export demand from US livestock producers.
CORN futures in Chicago finished three to five cents lower Monday on lukewarm demand as cheaper supplies from Ukraine spilled into the market.
Planting has begun in Brazil and expectations are that corn supplies will become increasingly easier to purchase in the next few months.
However, ideas that US farmers will plant less corn acres this spring helped to limit the losses.
WHEAT futures in Chicago ended eight to 10 cents per bushel lower Monday and six to seven cents per bushel lower on the Kansas City Board of Trade as the strength of the US dollar made US supplies less attractive on the international market, according to a report.
Concerns that the results of the Greek election would de-stabilize the Eurozone weakened the Euro against the US dollar, which could make European supplies cheaper for buyers.
Large global supplies of wheat also cast a bearish tone over the market.
– India is preparing to enter the wheat market and could sell up to two million tonnes of wheat to Asian buyers between February and July, according to a report.
– Pakistan has reportedly decided to give its wheat millers a rebate on 1.2 million tonnes of product.
– Post Holdings has agreed to purchase MOM brands in the US in a US$1.05 billion dollar deal. MOM’s manufactures hot wheat products.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
