By Dave Sims, Commodity News Service Canada
Winnipeg, November 7 – THE ICE Futures Canada canola market finished weaker on Monday, as a steady bout of warm, dry weather allowed Prairie farmers to resume harvesting.
“When it comes to canola, it’s all still down to weather. If we get a bunch more off, it could push the market even lower,” said a Winnipeg-based trader.
Prices were undermined by weakness in Malaysian palm oil.
The US soybean harvest is mostly complete and large supplies are coming on the market, which was bearish.
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The Canadian dollar was slightly higher relative to its US counterpart, which made canola less attractive to international buyers.
However, gains in the US soy complex helped to prop up prices.
Traders were hesitant to push canola values too low ahead of Tuesday’s US election.
The canola crush in Canada is running at a record pace which was supportive.
Milling wheat, barley and durum were untraded.
About 16,336 canola contracts traded on Monday, which compares with Friday when 21,244 contracts changed hands. Spread activity was very light.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade finished six to seven cents per bushel higher on Monday. The market was supported by rising demand from China.
Ideas that Hillary Clinton will likely win tomorrow’s US election lowered fears that trade with China will be disrupted, analysts said.
Funds have bumped up their net long positions for over a month now, according to a report.
On the other side, Brazilian farmers are racing ahead with their planting progress. The latest estimate showed that nearly 53 percent of this year’s crop was in the ground, compared to last week’s estimate of just 38 percent.
SOYOIL futures were higher on Monday, tracking gains in crude oil.
SOYMEAL futures posted gains on Monday.
CORN futures in Chicago ended two cents per bushel weaker on Monday in chart-based trading.
The market was undermined by favourable weather forecasts in the US Midwest, and the speed at which harvest is progressing. According to estimates ahead of the USDA report, the US harvest is 81 to 83 percent complete, which compares to just 75 percent last week.
New numbers from the Chinese government say the country’s corn consumption will hit just under 200 million tonnes, which compares to 176 million tonnes last year.
WHEAT futures in Chicago were down by three to four cents per bushel on Monday as large global supplies weighed down values.
Weekly exports inspections in the US came in at the high end of traders’ estimates, which was supportive for values.
Investors were positioning themselves ahead of tomorrow’s election as well as Wednesday’s release of the USDA supply/demand report.
