By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, July 18 – THE ICE Futures Canada canola market finished slightly higher in choppy trading on Monday.
Canola contracts took strength from the US soy complex as well as some speculative trade.
Malaysian palm oil and crude oil were both higher, which was supportive for prices.
Global stocks of canola and soybeans are expected to be tight in 2016/17, which underpinned values.
However, European rapeseed futures and crude oil were both lower, which dragged on canola.
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North American oilseed crops are looking fairly good at this stage, noted a Winnipeg-based trader.
“Even the drier areas in Alberta generally look good. It’s one of the better crop years with uniformity
in the Prairies that we’ve had,” he said.
About 19,545 canola contracts traded on Monday, which compares with Friday when 20,964 contracts
changed hands. Spreading accounted for about 2,240 of the contracts traded.
Milling wheat and durum were untraded while 100 barley contracts (October) changed hands.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade recovered from earlier weakness and closed six to ten cents per bushel stronger on Monday, propped up by mixed weather reports.
The US Midwest is expected to see hot, dry conditions in August, a key development time for soybeans, which supported prices on Monday.
Analysts say demand for US soybeans is strong, and expect that trend to continue, which is bullish.
China has been selling off its reserve soybeans, which capped gains.
SOYOIL prices closed stronger on Monday.
SOYMEAL closed higher on Monday.
CORN futures were five to six cents per bushel stronger on Monday, as traders focus on varying weather forecasts.
Corn prices were underpinned by reports of hot, dry weather in the US Midwest in coming weeks. Hot weather could affect pollination and kernel filling.
Market watchers say demand for US corn is strong, which added to the advances.
WHEAT closed five to six cents per bushel stronger on Monday, gathering spill over support from the nearby corn market.
Last week’s strong export sales kept the market underpinned, traders say.
However, wheat harvest is starting in Montana and North Dakota, which limited gains.
– Egypt has bought 300 thousand metric tonnes of Romanian and Russian wheat, market watchers say.
– Last week wheat closed below its ten-day moving average.
