By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 7 (MarketsFarm) – The ICE Futures canola market traded to both sides of unchanged on Monday, but settled with losses as declines in Chicago Board of Trade soybeans and soyoil weighed on values.
Chart-based speculative selling contributed to the eventual declines, as canola ran into technical resistance.
However, solid end-user demand, and the need to ration some of that demand going forward, remained supportive. Canola exports are running at a record pace, while the domestic crush is also solid, according to the latest Canadian Grain Commission data. Meanwhile, the latest production estimate from Statistics Canada, released last week, came in at the lower end of trade expectations.
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About 39,672 canola contracts traded on Monday, which compares with Friday when 48,182 contracts changed hands. Spreading accounted for 36,246 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade bounced around unchanged on Monday, but settled with small losses in the most active months.
Improving moisture conditions in parts of Brazil and forecasts calling for more rain accounted for some of weakness in soybeans, although the precipitation continues to miss some of the driest regions.
Brazil’s soybean crop is now 90 per cent seeded, according to the latest reports out of the country. That’s only three points behind the average for this time of year.
Ongoing labour unrest at soybean crushers in Argentina provided some support.
Weekly United States soybean export inspections of about 2.3 million tonnes were down five per cent on the week, but still well above what moved during the same week a year ago.
CORN futures were higher, with weather conditions in South America also being followed closely.
Dryness in Argentina accounted for some of the day’s strength, with corn seeding running well behind normal in the country.
The U.S. Department of Agriculture releases its monthly supply/demand report later this week, and pre-report positioning is expected to account for some activity the next few days.
WHEAT futures were mixed, with losses in Minneapolis spring wheat and a firmer tone in the winter wheats.
Chart-based positioning was a feature in wheat, with expectations for large world wheat supplies keeping a lid on the upside.
Weekly U.S. wheat export inspections of about half a million tonnes were down slightly from the previous week, but still up by 45 per cent on the year.
