By Glen Hallick, MarketsFarm
Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures resumed their sharp losses on Monday after closing mixed on Friday.
The United States markets were back in full swing after the Independence Day long weekend. Heavy pressure from weakness in the Chicago soy complex weighed on canola. Losses in European rapeseed added to canola’s woes, while Malaysian palm oil was relatively steady. Moderate upticks in crude oil helped to temper the decreases in the vegetable oils.
The November canola contract slipped below its 20-day moving average but remained above its other technical levels.
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Hot and dry weather across much of the Canadian Prairies also tried to sooth the pull back in canola. However, rain is in the region’s forecast that will bring much needed moisture.
The Canadian dollar retreated on Monday afternoon with the loonie at 73.10 U.S. cents compared to Friday’s close of 73.50.
There were 45,294 contracts traded on Monday, compared to 16,646 on Friday. Spreading accounted for 15,476 contracts traded.
Prices are in Canadian dollars per metric tonne:
Price Change Canola Nov 696.60 dn 22.90 Jan 704.70 dn 22.70 Mar 710.50 dn 22.40 May 715.40 dn 22.20
SOYBEAN futures at the Chicago Board of Trade were sharply weaker on Monday as good growing conditions in the United States encouraged losses.
Trading resumed following the Independence Day long weekend.
As rain adds to the tragic deluge in central Texas, the U.S. Corn Belt is forecast to get about a half inch of rain this week with up to two inches in some areas.
U.S. Census data placed May soybean exports at 1.60 million tonnes, down 26.8 per cent from a year ago. Soymeal exports increased to hit a May record of 1.36 million tonnes and those for soyoil were 142,303 tonnes for a five-year May high.
The U.S. Department of Agriculture reported soybean export inspections for the week ended July 3, were 389,364 tonnes, up 64.5 per cent from the previous week. Year-to-date inspections reached 46.25 million tonnes, an improvement of 10.5 per cent from this time last year.
Brazil reported its June soybean exports were 13.42 million tonnes, down from 13.96 million in the previous June.
CORN futures pulled back on Monday, in sympathy with soybeans.
The USDA reported an export sale for 135,000 tonnes of corn to Mexico. That included 29,000 tonnes of old crop and 106,000 tonnes of new crop.
The department said corn export inspections for the week were 1.49 million tonnes, up eight per cent. Cumulative inspections of 56.45 million tonnes are 29.7 per cent ahead of a year ago.
Brazil said its June corn exports were 369,533 tonnes, for a drop of 56.6 per cent from the previous June.
AgRural said 28 per cent of second corn crop in Brazil’s center-south region has been harvested. Although that’s up 10 points on the week, it’s far behind the 63 per cent combined this time last year.
WHEAT futures saw weakness as well on Monday due to good growing conditions and harvest pressure.
Weekly U.S. wheat export inspections were 436,628 tonnes, slipping 8.4 per cent. Early into the new wheat marketing year, total inspections were 1.76 million tonnes and 1.5 per cent ahead of a year ago.
Census data placed U.S. May wheat inspections at 2.16 million tonnes, a four-year high.
