By Dave Sims, Commodity News Service Canada
Winnipeg, July 30 (CNS Canada) – Canola contracts on the ICE Futures platform finished slightly higher in a light-trading day. Volumes were extremely low and reportedly suffering from today’s change-over from a Winnipeg-based trading platform to one in New York.
One trader in Winnipeg noted that canola took a long time to open last night. Another trader who farms near Winnipeg said it took him repeated efforts Monday morning to start trading.
Most of the trade was locked in a narrow range as many participants were leery to make major moves right now due to uncertainty over how the crop will finish off. Much of the canola looks good, but there are still concerns over excess dryness in certain areas of the western Prairies.
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Spread trade was moderate and the C$500 per tonne mark remains major resistance for the November contract.
Gains in soybeans were offset by losses in soyoil.
Strength in the Canadian dollar, relative to its U.S. counterpart, was bearish for values.
About 6,000 canola contracts traded, which compares with Friday when 7,584 contracts changed hands. Spreading accounted for 2,070 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade finished higher Monday in speculative trade.
There are some concerns over excess moisture in Illinois while other areas of the Midwest are too dry.
The November contract rallied early in the day but ran into technical resistance around US$8.96.
The corn market rose due to reasonable demand and tracking gains in the wheat market.
Hotter temperatures are expected later this week in the U.S. Corn Belt, which was supportive.
The ethanol market strengthened today with improved blender margins, which was bullish for corn prices.
Chicago wheat futures finished stronger on Monday, closing in on their highest point in nearly three years.
Extreme dryness in Europe and the Black Sea region continue to underpin prices. Russian exports are also expected to drop.
Funds are running with the news – betting that prices will go even higher in the weeks to come.
