By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, February 29 – THE ICE Futures Canada canola market suffered modest losses Monday, as weakness in Chicago Board of Trade soy oil weighed down values.
Losses in European rapeseed futures were also bearish for the market.
New restrictions by China that limit the amount of dockage allowed in canola imports also cast some uncertainty into the market. That, along with recent turmoil in the global stock market, helped keep large funds from placing long positions on the market, according to a Winnipeg-based trader.
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“I don’t think they’ll be tripping over themselves to get in here on the buy side and get long and get more aggressive,” he said.
Slow farmer selling was supportive along with steady buying from crushers.
“The growers are content to see what comes out of the news from China and the dockages issue,” he added.
On the other side, strength in Malaysian palm oil, CBOT soybeans and crude oil helped limit the losses.
Crush margins have also improved somewhat, according to the trader.
Around 12,839 canola contracts were traded on Monday, which compares with Friday when around 16,514 contracts changed hands. Spreading accounted for about 4,066 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed two to three cents per bushel weaker on Monday, pressured by competing supplies and ample domestic stocks.
The ongoing Brazilian harvest is bearish for soybeans as cheaper product becomes readily available.
Ample supplies of soybeans in the US reported by the United States Department of Agriculture (USDA) added to the declines.
Market watchers say soybeans are in a bearish cycle.
SOYOIL prices settled weaker on Monday, tracking Malaysian palm oil.
SOYMEAL closed stronger on Monday.
CORN futures closed one to three cents per bushel lower on Monday, pressured by the ongoing Brazilian harvest.
USDA projections for record-high corn stocks added to the declines on Monday.
However, gains in crude oil futures limited losses, as corn is an ingredient in ethanol production.
WHEAT closed mostly unchanged to two cents per bushel stronger on Monday.
A weaker US dollar lent some support to wheat prices on Monday.
Investor short-covering was also a feature, analysts say.
– Russia’s Minister of Agriculture said there is no reason to revise the country’s wheat export duty, according to reports.
– Saudi Arabia bought 870,000 metric tonnes of 12.5 protein hard red wheat, analysts say.
