By Phil Franz-Warkentin, MarketsFarm
Winnipeg, July 8 (MarketsFarm) – The ICE Futures canola market was stronger on Monday, recovering from last week’s losses as speculators covered some of their large net-short positions.
Gains in Chicago soybeans and soyoil provided some spillover support for canola, with a slightly weaker tone in the Canadian dollar also underpinning the futures.
Persistent weather concerns in parts of the Prairies, despite improving moisture conditions in many areas, added to the firmer tone.
However, large old crop supplies and the ongoing trade dispute with China tempered the upside. The nearby technical bias has also shifted lower, making any gains a selling opportunity from a chart standpoint.
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About 15,762 canola contracts traded on Monday, which compares with Friday when 17,066 contracts changed hands. Spreading accounted for 5,548 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted small gains on Monday. After posting sharp losses on Friday, soybeans were due for a bit of a correction to start the week. Optimism over ongoing trade talks between the United States and China was also supportive.
Weekly U.S. soybean export inspections of 759,000 tonnes were up 5 per cent on the week and well above the same holiday time frame a year ago.
Improving Midwestern crop conditions tempered the upside.
The U.S. Department of Agriculture releases its monthly supply/demand report on Thursday, and positioning ahead of the data accounted for some of the activity.
CORN futures were firmer on the day, as uncertainty over the size of the U.S. crop remained supportive.
Weekly U.S. corn export inspections of just over 700,000 tonnes were a marked improvement from the previous week, but were still well behind what moved during the same week a year ago.
While wet Midwestern fields need some heat and dryness, extended weather forecasts calling for too much hot weather provided some support for corn today.
WHEAT futures ended mostly lower on Monday. While the U.S. winter wheat harvest is running behind normal, traders expect it to have reached the half-way mark in today’s crop progress report.
Condition ratings for spring wheat in the U.S. are also expected to have seen some improvement over the past week.
