By Dave Sims, Commodity News Service Canada
Winnipeg, August 20 (CNS Canada) – Canola contracts on the ICE Futures platform ended mostly stronger on Monday, as gains in Chicago Board of Trade soyoil provided the path of least resistance.
The technical bias appears to be pointed higher and speculative buying was a feature of the session.
However, falling temperatures across Western Canada have taken some of the weather premium out of the market.
Canola continues to be expensive relative to other oilseeds.
“I would be surprised if exports didn’t go down next year if canola doesn’t get more realistically priced,” said a trader in Winnipeg.
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Commercial buying was lukewarm and traders may be leery to make large purchases until more information about the state of the crop is known, the trader added.
About 8,749 canola contracts traded, which compares with Friday when 9,862 contracts changed hands. Spreading accounted for 879 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended relatively unchanged on Monday in choppy, technical trading.
There is growing optimism that a trade deal between China and the United States could happen, which was supportive.
Traders are closely monitoring a ProFarmer crop tour underway in the Midwest this week. The group was in Ohio this morning and will release official estimates on Friday.
The corn market finished slightly lower on Monday as more rain is expected to fall in the U.S. Corn Belt this week.
The U.S. Department of Agriculture pegged the U.S. corn crop at 70 per cent good to excellent this week, which compares to last year’s rating at this time of 62 per cent.
Ethanol margins remain tight and the corn basis in the United States is expected to fade.
Chicago wheat futures dropped sharply as concerns about drought problems in the Black Sea region began to fade.
The spring wheat harvest is clipping along at a good rate which undermined prices.
Strength in the U.S. dollar was also creating headaches for wheat exporters.
