By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, May 9 (CNS Canada) – ICE Futures Canada canola contracts were mixed on Monday, as losses in the Canadian dollar advanced prices, while weakness Chicago Board of Trade soybeans pushed more deferred contracts lower.
The Canadian dollar was weaker on Monday, declining with crude oil futures and soft domestic data, which makes canola less appealing to international buyers.
Traders are baking a weather premium into the market, which further supported front-end contracts.
Parts of the Prairies are dry, and weather forecasts have been trimmed, which is bullish.
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Canola was also able to gather some independent strength from gains in CBOT soy oil in previous sessions.
But losses in Chicago Board of Trade soybeans added pressure to the November and January contracts.
Soybeans moved lower on Monday with trader positioning ahead of a United States Department of Agriculture supply and demand report due out on Tuesday, and gains in the US dollar.
Malaysian palm oil closed lower overnight, which added to the declines.
About 20,155 canola contracts were traded on Monday, which compares with Friday when 17,955 contracts changed hands.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures suffered losses of seven to eight cents per bushel Monday, as large funds took profits.
Strength in the US dollar pressured prices while traders adjusted positions ahead of the USDA supply/demand report which is due out on Tuesday, analysts said.
However, losses were mitigated by crop loss in Argentina.
Soyoil finished 32 points lower tracking soybeans.
SOYMEAL futures also ended weaker.
Wheat futures on the Chicago Board of Trade finished six to seven cents per bushel lower on fresh reports of increased wheat production in Kansas. Total output in the state is estimated to be up 33 per cent over last year, an analyst said.
Australia is expected to plant 7.5 million hectares of wheat which was bearish.
There is word Russia may extend its wheat export tax for another year.
Corn futures on the Chicago Board of Trade declined seven to eight cents per bushel Monday on expectations of higher US and world grain stockpiles by the end of the 2016/17 season.
Weakness in crude oil also weighed down values.
However, losses were limited by a USDA report that found private exporters had booked sales of 170,000 tonnes of corn for delivery to Japan.
– Egypt is expected to buy another four million tonnes of wheat from its producers in an effort to encourage more production from growers
– France has planted over five million tonnes of soft wheat this year. Officials say that is up 1.4 per cent from last year.
– Taiwan is on the hunt for 109,000 tonnes of milling wheat, preferably from the US.
