By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Aug. 13 (CNS Canada) – ICE Futures canola contracts settled with small gains on Monday after posting losses in the most active months for most of the session.
Gains in Chicago Board of Trade soybeans and soyoil provided some underlying support for canola, while a softer tone in the Canadian dollar also underpinned the futures.
Recent extreme heat across much of Western Canada was also supportive, as the adverse weather likely cut into the yield prospects in some areas.
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However, temperatures were cooler on Monday, which put some pressure on values. Ideas that canola remains expensive compared to other oilseeds also tempered the upside.
About 9,874 canola contracts traded, which compares with Friday when 13,831 contracts changed hands. Spreading accounted for 3,694 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted small gains on Monday, as the market was due for a bit of a correction after dropping sharply on Friday. However, the large production forecast that triggered Friday’s selloff remained a bearish influence in the background.
While the ongoing trade war with China also continued to weigh on values, China’s state grain buyer Sinograin is reportedly paying the 25 per cent tax on a 70,000 tonne shipment of soybeans that had sat at port for the past five weeks.
The U.S. Department of Agriculture announced a flash sale of 142,500 tonnes of soybeans to Mexico this morning.
CORN futures posted small losses, as last Friday’s unexpectedly large yield estimate from the USDA continued to weigh on prices to start the week, especially as nearby weather forecasts remain relatively favourable across the Midwest.
However, solid export demand provided some support with flash sales of just over 200,000 tonnes of corn to Mexico announced this morning. Weekly U.S. corn inspections of about 1.2 million tonnes were also supportive.
WHEAT futures were down on Monday, seeing some follow-through selling after Friday’s turn lower.
While declining production prospects in a number of wheat growing regions of the world remained supportive, those concerns have been largely priced into the futures for the time being.
Relatively favourable harvest weather for the North American spring wheat crop also put some pressure on values.
