By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Feb. 4 (CNS Canada) – ICE Futures canola contracts were stronger on Monday, as gains in Chicago Board of Trade soyoil provided some support.
Weakness in the Canadian dollar, solid demand from domestic crushers and supportive chart signals also underpinned the futures.
However, ample supplies in the commercial pipeline kept a lid on the upside, according to participants.
Statistics Canada releases its latest stocks report on Feb. 5, and positioning ahead of the data accounted for some of the thin and choppy activity. The report will show grain supplies in the country as of Dec. 31, and should provide a picture of usage-to-date.
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About 14,791 canola contracts traded on Monday, which compares with Friday when 17,697 contracts changed hands. Spreading accounted for 9,872 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade settled with small gains on Monday, as solid export demand provided support.
The United States Department of Agriculture reported private export sales of 612,000 tonnes of soybeans this morning, which helped confirm ideas that China would be buying more beans after last week’s trade talks.
Weekly export inspections of nearly a million tonnes for the week ended Jan. 31 were up slightly on the week, but well off what moved during the same week a year ago.
However, South American harvest pressure weighed on values. Brazil’s soybean harvest was 19 per cent complete as of Jan. 31, according to a report from AgRural, which was well ahead of the five-year average of six per cent.
The USDA will release its monthly supply/demand report on Friday, along with some data from January that was delayed due to the government shutdown. Positioning ahead of the reports was a feature.
However, activity was subdued with many Asian markets closed for the Lunar New Year holiday.
CORN posted small gains, although the market remained stuck in its sideways trading range.
Weekly U.S. corn export inspections came in at 901,214 tonnes, which was down from both the previous week and the year-ago level. Japan and Mexico were the two largest buyers.
WHEAT futures were narrowly mixed on the day, with a softer tone in Minneapolis spring wheat and gains in the winter wheat contracts.
Improving weather conditions across some U.S. winter wheat growing regions were bearish, with snow hitting the northern tier states and temperatures turning more moderate after last week’s cold snap.
However, expectations for improved export demand provided some support.