By Dave Sims, Commodity News Service Canada
Winnipeg, Sept. 10 (CNS Canada) – The ICE Futures canola platform recorded minor gains on Monday, as a pending report by the United States Department of Agriculture kept a note of caution in the air.
On Wednesday the USDA will release its production estimates and there are ideas it could feature a hike to the soybean yield in the U.S.
Modest gains in the Chicago Board of Trade soy complex lent some strength to futures.
Funds remain short in the market and cold weather in northern Alberta has raised concerns about possible frost and snow.
Read Also
North American Grain/Oilseed Review: Canola, grains in the green
Glacier FarmMedia – Canola futures on the Intercontinental Exchange were slightly higher on Friday in choppy trade. Chicago soyoil and Malaysian…
Crush margins remain relatively weak and farmer selling is on the rise.
Spreads are expected to widen out in the next couple of days, according to a trader in Winnipeg.
About 7,650 canola contracts traded, which compares with Friday when 12,000 contracts changed hands. Spreading accounted for 3,294 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade finished slightly stronger in speculative buying.
The market corrected slightly higher in the wake of last week’s losses.
Sales of old crop soybeans are moving extremely slowly right now and the ongoing trade tension between China and the United States weighed on futures.
The corn market chopped higher in light trade.
Dry weather is expected this week in the U.S. Corn Belt, which should help harvest efforts.
This week’s U.S. export sales report pegged new crop sales at 1.03 million tonnes, which was in the upper end of trade guesses.
Chicago wheat futures recorded strong gains on Monday, just one trading session after futures hit their lowest point since mid-July.
All of the wheat markets in the U.S. have been pressured in recent weeks by cheap Russian wheat, which has been flooding the market.
Most analysts expect this week’s USDA production report to put world carryover stocks at 257.6 million tonnes, which would be down roughly one million tonnes from last month’s estimates.
