By Dave Sims, Commodity News Service Canada
Winnipeg, June 18 (CNS Canada) – Canola contracts on the ICE Futures Canada platform ended slightly lower in choppy trading Monday, as turmoil in international trade markets cast a chill over canola.
Investors were having a hard time deciding whether to treat the escalation of trade tariffs between China and the United States as good or bad for canola. On the one hand, investors are reluctant to buy right now due to the current trade war. No one wants to be holding any risky positions should the battle between the U.S. and China intensify. However, on the other hand, it has sparked ideas China may have to import more Canadian oilseeds in the absence of U.S. supplies.
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The Canadian canola crop is off to a good start, although more rain is on the wish-list of many regions.
Losses in U.S. soybeans and Malaysian palm oil futures were bearish for the market.
However, recent weakness in the Canadian dollar lent strength to futures.
About 22,093 canola contracts traded, which compares with Friday when 27,514 contracts changed hands. Spreading accounted for
12,896 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures finished slightly higher with technical buying on Monday.
Stocks of soyoil in the United States are lower than expected. Stocks at the end of May were pegged at 1.86 billion pounds, down 11.3 per cent from April.
The trade dispute between China and the U.S. continues to pressure the market. However, bargain hunters came out before the close looking to snap up cheap contracts.
Corn futures posted losses on Monday as more rain is forecast to fall in the U.S. Corn Belt this week.
Traders are reluctant to take any aggressive positions right now due to the threat of more sanctions between the U.S. and its major trading partners.
Russian exports have weakened. The country exported a little over four million tonnes of corn in the first eight months of 2017/18, which was down two percent from the year before.
Chicago wheat futures finished weaker on Monday, due to harvest pressure.
Rain in Kansas was also bearish for values.
Excess dryness in major wheat-growing areas of Russia were supportive for prices.
