By Terryn Shiells, Commodity News Service Canada
WINNIPEG, March 16 – The ICE Futures Canada canola market ended slightly higher on Monday, after a day of quiet, choppy activity.
The market remained in a fairly narrow trading range throughout the session, as traders were wary of pushing values too far one way or the other due to choppiness in outside markets, brokers said.
The Canadian dollar was slightly firmer on Monday, but canola was still finding some support from the loonie because it remains on the weak side.
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Steady demand from domestic crushers and exporters was also bullish, as was the need to build weather premiums into new crop contracts.
On the other side, some spillover pressure came from the declines seen in the Chicago soy complex.
Further downward pressure came from expectations of an early start to the planting season in Western Canada and the large global oilseed supply situation.
About 14,015 contracts changed hands on Monday, which compares with Friday when 13,105 contracts traded. Spreading was a feature of the activity, accounting for 9,520 of the trades.
Milling wheat, durum and barley futures were all untraded. Though, the Exchange moved wheat values sharply higher following Monday’s close.
Chicago soybean futures ended mostly lower after a day of choppy activity on Monday, ranging from one cent higher to five cents US per bushel lower.
Signs of slowing export demand for US soybeans, due to the strong US dollar and competition from South America, weighed on the market.
Further downward pressure came from expectations that US farmers will increase their soybean acreage this spring, analysts said.
However, concerns that wet weather will damage some crops, and also delay the harvest of soybeans in parts of South America were supportive.
SOYOIL futures were softer on Monday, undermined by weakness in Malaysian palm oil and CBOT soybean futures, brokers said.
SOYMEAL futures were also weaker, as strength in the US dollar index made the commodity more expensive to foreign buyers, traders said.
CORN futures in Chicago finished steady to two cents US per bushel lower on Monday, reacting to weakness in crude oil values, as it could reduce the demand for corn in the ethanol market.
Slow export demand for US corn, due to a recent surge in the US dollar index, was also bearish, participants said.
However, expectations that the US will plant less corn this spring limited the downside, as did spillover support from the strength in wheat.
WHEAT futures in the US ended 12 to 16 cents US per bushel higher, underpinned by short covering following recent losses, analysts said.
Concerns about unfavourable weather for the US winter wheat crop added to the bullish tone, as did better than expected weekly export inspections data from the USDA.
However, the global supply situation remains large, which limited the upside, as did ongoing strength in the US dollar index.
• Korea has issued a tender to purchase 69,000 metric tons of feed grade wheat, to be delivered before September 25, 2015, reports say.
• About five to seven per cent of India’s wheat crop may have been damaged by recent unseasonal rainfall, the country’s government said.
• Ethiopian wheat farmers will begin fortifying wheat flour with vitamins and minerals this month, which will provide needed health benefits for the country’s population, a news release from Partners in Food Solutions, said.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
