By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 17 (CNS Canada) – ICE Futures canola contracts ended mixed on Monday, with a firmer tone in the front months and losses in the more deferred positions.
While gains in Chicago Board of Trade soybeans were supportive, soyoil was lower and canola traders showed a reluctance to push values too far one way or the other.
End-user demand provided some underlying support for
Canola, according to participants, with recent improvements in crush margins thought to be bringing in some exporter and domestic crusher demand.
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Recent weakness in the Canadian dollar was also supportive.
About 31,956 canola contracts traded, which compares with Friday when 32,007 contracts changed hands. Spreading accounted for 21,066 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, as the market saw a bit of a correction after Friday’s losses.
Expectations for increased Chinese purchases, as tensions between the United States and China eased somewhat last week, were also supportive.
The National Oilseed Processors Association reported that 167 million bushels of soybeans were crushed in the U.S. in November, marking a new record for the month. However, the crush still came in below market expectations.
Forecasts calling for improving moisture conditions for Brazilian soybean crops put some pressure on the market.
CORN futures settled with small losses, with chart-based profit-taking a feature amid a lack of any fresh fundamental news.
However, ideas that China will be looking to buy more U.S. corn in the New Year were somewhat supportive.
WHEAT futures were stronger on Monday, taking some direction from recent strength in the Russian wheat market.
After being active exporters this marketing year, Russian wheat supplies are reportedly tightening and there is talk that the country will soon need to take a step back from the export market. The Russian agriculture minister is set to meet with grain traders in the country later this week.
Reports that planted U.S. winter wheat acres came in considerably below early expectations were also supportive.
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