By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, March 21 (CNS Canada) – ICE Futures Canada canola contracts were up on Monday as the combination of rising CBOT soyoil prices and weakness in the Canadian dollar helped boost crush margins.
Exporters and domestic crushers were both showing solid demand, while some chart-based buying was also noted as prices moved up to test nearby resistance.
However, farmer selling also came forward on a scale up basis and tempered the advances to some extent.
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A lack of routine buying interest out of Japan, with markets in that country closed for a national holiday, served to keep activity on the quiet side.
Some traders were also thought to be already moving to the sidelines ahead of the Easter long weekend, which will see North American markets closed on Friday.
About 9,776 canola contracts were traded on Monday, which compares with Friday when 12,077 contracts changed hands. Spreading accounted for about 2,786 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed three to four cents per bushel stronger on Monday, supported by investor short-covering.
Gains in crude oil were also supportive to soybeans on Monday, as it makes blending the commodity into biodiesel more appealing.
South America’s ongoing soybean harvest limited gains on Monday.
SOYOIL prices settled higher on Monday, tracking Malaysian palm oil.
SOYMEAL closed stronger on Monday, following nearby grain and oilseed markets.
CORN futures closed about two cents per bushel higher on Monday, propped up by investor short-covering.
Stronger crude oil prices were also a supportive feature on Monday, as corn is an ingredient in ethanol production.
Spillover support from wheat added to the bullish tone.
WHEAT closed two to three cents per bushel stronger on Monday, as cold weather in the US Southern Plains puts the region’s crops at risk.
Between 16 and 20 per cent of the wheat crop in southwestern Kansas and western Oklahoma was damaged by freezing temperatures over the weekend, analysts say.
Wheat crops had been at a heightened risk as above-average temperatures caused plants to come out of winter dormancy.
– Algeria bought 150,000 tonnes of Canadian durum, according to reports on Monday.
– India is likely to extend its wheat import tax beyond March, analysts say.
END
