By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 24 (CNS Canada) – ICE Futures canola contracts were weaker on Monday, taking some direction from the Chicago Board of Trade soy complex as traders squared positions ahead of Christmas and the New Year.
The canola market closed early on Monday, and will remain closed through Christmas and Boxing Day. Markets in the United States will also be closed on Dec. 25, but will trade their usual hours on Wednesday, Dec. 26.
Ample supplies in the commercial system were another bearish influence on canola, although a lack of farmer selling provided some support.
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The Canadian dollar held steady, but remained somewhat supportive for canola after posting large losses last week.
About 10,663 canola contracts traded on Monday, which compares with Friday when 32,190 contracts changed hands. Spreading accounted for 8,372 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved to both sides of unchanged on Monday, but settled with small losses in most months.
The partial government shutdown in the United States means that the U.S. Department of Agriculture is not updated its website, delaying any export news that may be taking place.
The U.S. and China continued to talk over the weekend, although there have still been no concrete developments on the trade front and the looming South American harvest is fast closing the window of opportunity U.S. business.
Forecasts calling for beneficial rain in part of Brazil put some pressure on soybean values. However, hot and dry conditions recently may have cut into the yield potential in some areas.
CORN futures were weaker, with pre-holiday positioning a feature as traders took some profits after Friday’s gains.
However, downgrades to private production estimates out of South America provided some support.
Reports that India may soon be looking to purchase a million tonnes of soybeans also underpinned the market.
WHEAT futures were steady to lower, as ongoing export competition out of Russia kept the market under pressure.
Good rains in the southern U.S. Plains were another bearish influence, as the moisture will help improve the conditions for the winter wheat crops there.
