By Phil Franz-Warkentin and Jade Markus Commodity News Service Canada
Winnipeg, April 4 (CNS Canada) – ICE Futures Canada canola contracts were stronger at Monday’s close, after bouncing around both sides of unchanged throughout the session.
Fund short covering accounted for much of the buying interest, while a softer tone in the Canadian dollar and gains in CBOT soyoil also provided some support. Weather uncertainty ahead of spring seeding kept some caution in the futures as well, with some areas of Western Canada still on the dry side.
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However, steady farmer selling did limit the upside potential in canola, especially as soybeans were down in Chicago. The advancing South American soybean harvest remained a bearish feature in the background of the oilseed markets as well.
About 20,233 canola contracts were traded on Monday, which compares with Friday when 22,142 contracts changed hands. Spreading accounted for about 11,912 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 two to five cents per bushel weaker on Monday, as rains in the US Delta could prompt producers to seed soybeans instead of corn.
Weak demand for soybeans reflected in data from the United States Department of Agriculture (USDA) last week added to the declines on Monday.
However, analysts say short term chart trends for soybeans are up, and the commodity could gain in coming sessions.
SOYOIL prices settled higher on Monday, tracking Malaysian palm oil.
Market watchers say the edible oil complex is strong.
SOYMEAL closed weaker on Monday, following losses in nearby grain and oilseed markets.
CORN futures closed mostly unchanged on Monday, as nearby contracts were supported by wet weather in key growing regions.
Corn seeding has been halted by unfavourable conditions, which is bullish.
However, last week’s data from the USDA still hung over the market, as this year’s seeding is expected to be up about six per cent from last year, and domestic stockpiles remain high, which had a bearish effect on far contracts.
WHEAT closed one to two cents per bushel weaker on Monday as heavy stockpiles and sluggish demand weighed on the market.
Last week the USDA said that stockpiles were up 20 per cent from last year’s levels.
Demand for US wheat has been limited due to strength in the greenback, which is bearish.
– The Black Sea region is expected see lower production this year, market watchers say.
– Russian wheat exports were flat last week, analysts say, due to fluctuations in the country’s currency.
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