By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Aug. 26 (MarketsFarm) – The ICE Futures canola market was weaker on Monday, retreating from earlier gains in choppy activity.
Strength in the Canadian dollar and a steady tone in Chicago Board of Trade soyoil accounted for some of the selling pressure, as crush margins softened.
Chart-based speculative selling contributed to the declines, with the November contract testing the lower edge of its nearby trading range.
However, investors were still showing a reluctance to push values too far one way or the other until they get a better sense of new crop production.
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Statistics Canada releases its first survey-based crop estimates on Wednesday, Aug. 28, which should provide some nearby direction for the market.
CBOT soybeans were stronger on the day, helping limit the losses in canola.
About 13,148 canola contracts traded on Monday, which compares with Friday when 9,927 contracts changed hands. Spreading accounted for 8,348 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, taking back some of Friday’s declines as concerns over the trade war between the United States and China showed signs of easing.
After new tariffs and comments from President Trump heighted trade tensions on Friday, both sides were back calling for calm to start the week.
Ideas that U.S. soybean yields may not live up to earlier expectations also provided some support, as a crop tour last week showed smaller pod counts in many areas.
Weekly U.S. soybean export inspections of just under a million tonnes were down slightly from the previous week, but up from what moved during the same week a year ago. China was a major buyer.
CORN ended narrowly mixed, seeing some consolidation to start the week after Friday’s losses.
Forecasts calling for beneficial rain in some dry U.S. corn growing regions over the next week put some pressure on values.
Weekly US corn export inspections of 640,000 tonnes were up on the week, but only about half of what moved during the same week a year ago.
The announcement of a tentative trade deal between the U.S. and Japan was somewhat supportive.
WHEAT futures were lower on Monday, taking back some of their recent gains.
While wheat was due for a correction, the trade deal with Japan could open the door for more U.S. wheat sales to the country.
Weekly U.S. wheat export inspections came in at just under half a million tonnes.
