By Terryn Shiells and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, March 17 – ICE Futures Canada canola contracts were higher on Monday, despite declines seen in Chicago soyoil futures, as speculative based buying helped to underpin the market.
Continued short covering, ideas that canola is still undervalued compared to other oilseeds and a bullish technical bias further lifted prices.
Bookings by domestic crushers in Canada may have also provided support for the market, as did reports that logistics problems in Western Canada are starting to improve.
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However, spillover pressure from the weakness in outside oilseed markets limited the gains, as did the upswing in the value of the Canadian dollar.
Steady farmer selling following recent advances was also bearish, traders said.
About 22,258 canola contracts were traded on Monday, which compares with Friday when 12,173 contracts changed hands. Spreading accounted for 18,262 of the trades.
Milling wheat, durum and barley futures were untraded, though the Exchange moved wheat prices lower after the close.
SOYBEAN futures at the Chicago Board of Trade settled one to four cents per bushel higher on Monday, recovering from earlier declines as supportive technical signals and concerns over spring planting delays provided some support.
Soybeans were lower in overnight activity, taking some direction from the losses in wheat and corn. However, the nearby technical signals remain pointed higher and speculative buying interest came forward to provide support.
Persistent cold weather conditions across the US Midwest were also supportive for soybeans, as concerns over possible seeding delays start to find their way into the market.
SOYOIL futures were weaker on Monday, as losses in Malaysian palm oil put some pressure on values. Spreading against soymeal also weighed on prices.
SOYMEAL futures were higher on Monday, with positioning against soyoil contributing to the advances.
CORN futures in Chicago settled with losses of five to seven cents per bushel, as easing concerns over shipping disruptions in the Black Sea weighed on prices.
People in Crimea voted overwhelmingly in favour of joining Russia in a referendum this Sunday. While questions remain over the validity of the vote, and Western nations have now issued some sanctions against Russia, most people in the agriculture sector are now of the opinion that grain will continue to move smoothly from the region.
Solid demand for US corn did provide some support, with Mexico in the market making fresh purchases.
WHEAT futures in Chicago settled 10 to 13 cents per bushel lower on Monday, as easing tensions over possible disruptions to grain movement in the Black Sea weighed on prices.
Ukraine and Russia are both major players in the world wheat market, and any disruptions to grain movement there would open the door for more US wheat exports.
Persistent concerns over dry weather across parts of the Southern US Plains helped underpin the wheat market, limiting the losses.
• CHS Inc., a US-based agri-business, announced the purchase of 16 Canadian farm retail businesses from Agrium. CHS said it intends to further expand its Canadian operations.
• Grain exports from Ukraine continue to show no signs of slowing down, with 700,000 tonnes of corn exported during the past week, according to a report from Agritel.
• UK bread maker Hovis announced that it will go back to sourcing 100% UK wheat after being forced to use imported supplies following a poor domestic crop in 2012.
