By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, June 27 (CNS Canada) – ICE Futures Canada canola contracts were up on Monday, seeing a correction off of nearby lows to start the week.
Gains in the Chicago Board of Trade soy complex, weakness in the Canadian dollar, end-user bargain hunting, and ideas that last week’s losses were overdone all contributed to Monday’s gains, according to participants.
Adverse weather in some parts of Western Canada over the weekend provided some further support, although conditions remain relatively favourable overall.
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Statistics Canada releases its updated acreage estimates on Wednesday, June 29, and market participants are generally anticipating an upward revision to the canola number compared to the earlier forecast.
About 30,322 canola contracts were traded on Monday, which compares with Friday when 27,662 contracts changed hands.
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 ten to 30 cents per bushel stronger on Monday, propped up by the expectation for hot and dry weather in July.
Short term forecasts for dry weather in the US mean soybean crops could be at risk, market watchers say.
Strong demand for US soybeans further underpinned the market.
Trader positioning ahead of a quarterly stocks report later this week was also a feature.
SOYOIL prices closed higher on Monday, tracking advances in soybeans.
SOYMEAL closed stronger on Monday.
CORN futures were mixed, but mostly unchanged on Monday, with some contracts pressured by losses in crude oil.
Crude oil futures have lost ground since Friday, when news came out that Britain had voted to leave the European Union.
Strong export demand limited losses on Monday.
WHEAT closed seven to eight cents per bushel lower on Friday, pressured by gains in the US dollar.
A stronger greenback makes US commodities less affordable to international buyers.
Harvest pressure was also a feature on Monday.
– Jordan has tendered for 100,000 metric tonnes of hard wheat, analysts say.
– A new grain hub is being built in Serbia starting September, market watchers say.
