By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, April 18 – THE ICE Futures Canada canola market finished higher on Monday, tracking gains in Chicago soyoil and Malaysian palm oil.
The political situation in Brazil propped up the real which cut into that country’s exports and prompted buyers to shop around for cheaper supplies, an analyst said.
Canada’s tighter canola carryout forecast helped to underpin the market.
Excess dryness in some parts of Western Alberta was also supportive while speculative buying was a feature, said the analyst.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
However, the Canadian dollar was higher relative to its US counterpart, which made canola less attractive to out-of-country buyers.
Losses in crude oil and European rapeseed futures undermined the market.
Around 28,365 canola contracts traded on Monday, which compares with Friday when around 31,181 contracts changed hands. Spreading accounted for about 18,912 of the contracts traded.
Milling wheat, barley and durum were untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed about one cent lower to about two cents higher on Monday, as high global supplies balanced production concerns in South America.
Brazil is too dry, and heavy rains in Argentina have the potential to cause crop loss, which is bullish.
Declines in the US dollar added to soybean’s advances.
But losses in crude oil were bearish, as soybeans are an ingredient in biodiesel, and lower prices make blending above mandated amounts less appealing.
SOYOIL prices settled higher on Monday, tracking Malaysian palm oil.
SOYMEAL closed weaker on Monday.
CORN futures closed one to three cents per bushel higher on Monday, gathering support from the nearby wheat market.
Dryness in Brazil added to corn’s gains, as traders are concerned about production.
Corn futures are moving near important resistance levels, market watchers say, and that will dictate where the market moves in coming sessions.
WHEAT closed ten to 13 cents per bushel stronger on Monday, as many spec traders exited short positions.
Investors shed bearish bets on Monday as heavy rainfall in the US Southern Plains could hurt crops in the region.
Losses in the greenback added to the advances, by making US wheat more competitive internationally.
– Chicago wheat has moved past its 50 day moving average.
– Most parts of the Canadian Prairies are expected to see dry conditions in the short term, market watchers say.
