By Dave Sims, Commodity News Service Canada
Winnipeg, June 4 (CNS Canada) – Canola contracts on the ICE Futures Canada platform suffered losses on Monday, following declines in the U.S. soy complex.
Technical selling contributed to the downturn.
A meeting between Chinese trade officials and United States Commerce Secretary Wilbur Ross over the weekend did not result in the lowering of trade tariffs between the two countries. In fact, the two sides only seem to have hardened their positions, which was bearish for the market.
Recent rains across the Prairies have helped replenish soil moisture levels in many areas and helped brighten the outlook for the crop.
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Around 24,182 canola contracts were traded on Monday, which compares with Friday when around 36,065 contracts changed hands. Spreading accounted for 15,896 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures dropped on Monday as ideas grew that China would not be importing soybeans from the United States anytime soon.
Technical selling was a feature of the day’s activity.
The dominant July contract received technical support at the US$10 per bushel level, limited the losses.
Corn futures finished sharply lower on Monday as speculators were liquidating long positions.
Weather conditions in the U.S. Corn Belt have been relatively favourable and there are expectations of another massive crop.
On the other side, some major corn-growing regions in China are mired in drought-like conditions, which was bullish for the U.S. corn market.
Chicago wheat posted solid losses on Monday, after favourable rains fell in the U.S. northern Plains.
Farmer selling was bearish for values.
Egypt has decided to accept a shipment of Russian wheat after it initially tested above the allowable limit for ergot fungus.
