By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, June 6 (CNS Canada) – ICE Futures Canada canola contracts were higher on Monday, but lagged Chicago Board of Trade soybeans to the upside as the firm Canadian dollar put a damper on the market.
Export demand and Midwestern weather concerns were behind some of the buying interest in soybeans that spilled into canola, according to participants.
Solid end user demand and a lack of significant farmer selling pressure added to the firmer tone in canola.
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However, the Canadian dollar has posted sharp gains relative to its US counterpart over the past few days, which tempered the upside potential in canola. Relatively favourable Canadian weather conditions were also somewhat bearish.
About 31,596 canola contracts were traded on Monday, which compares with Friday when 34,796 contracts changed hands. Spreading accounted for about 16,494 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed six to twenty cents per bushel stronger on Monday, as less-than-favourable weather in the US Midwest supported the market.
Hot, dry conditions in key growing areas of the US put the country’s developing crops at risk, which is bullish.
The expectation for increased interest from China for new-crop soybeans further supported prices.
Crop-loss in Argentina added to the advances on Monday.
SOYOIL prices closed stronger on Monday, following gains in Malaysian palm oil.
SOYMEAL closed mostly higher on Monday, with weakness in the July contract as traders started liquidating positions.
CORN futures moved close to an 11-month-high on Monday, gaining three to ten cents per bushel, supported by lacklustre farmer-selling.
US producers have been holding onto their stocks as crop conditions are not yet clear, especially as above-normal temperatures in the US could hurt crop development.
Stronger crude oil futures added to corn’s gains.
WHEAT closed ten to twelve cents per bushel stronger on Monday, as India is expected to import more wheat this year.
Drought has hurt the country’s domestic production.
Investor short-covering was also a feature on Monday.
Wet weather in Europe could put the country’s crops at risk, analysts say, which added to wheat’s advances.
– India may need to import two million metric tonnes of wheat this year, reports out of the country say.
– Harvest progress is expected to continue in Oklahoma and Texas due to dry weather, market watchers say.
