(Reuters) — ICE Canada canola futures rose on Monday after four straight losses, supported by concerns about weekend rains in Western Canada.
November canola added $2 at $420.30 per tonne.
The market, which lost 2.6 percent last week, was oversold in light of some deteriorating crop conditions, a trader said.
Rain delayed harvesting for some farmers, while slow-developing crops in some parts of Western Canada need heat.
Lack of farmer selling was also seen as supportive, but prospects for a huge U.S. soybean harvest overhang canola.
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Chicago corn futures fell on Monday after two straight days of gains, while soybeans slid to a contract low on forecasts of record crops in the United States.
Wheat also weakened on profit-taking as the focus returned to large global crops.
Chicago Board of Trade new-crop December corn fell 1.1 percent or four cents to $3.67 1/2 US a bushel.
“That’s a reflection of the crop and the weather,” said Terry Linn of the Linn Group, a Chicago brokerage. “The rains over the weekend were substantial and fell in all the right places, and they are very bearish.”
The fact funds hold long positions in corn as the crop rounds into shape has also led to some selling, said Karl Setzer, market analyst at MaxYield Cooperative in West Bend, Iowa.
New-crop November soybeans dropped 1.2 percent or 12 3/4 cents to $10.29 1/4 a bu. after hitting a contract low earlier in the session. December wheat fell 1.4 percent or 7 3/4 cents to US $5.54 1/2 a bu.
“We see lower prices for corn, soybeans and even wheat largely driven by fundamentals,” said Phin Ziebell, agribusiness economist at the National Australia Bank.
Corn and soybeans typically come under selling pressure around this time of year when traders determine the crop’s size, Setzer said.
“A lot of guys are (thinking) the crop is made, which isn’t 100 percent accurate,” he said. “There is still some time for yield loss. But yields are projected so high, especially in corn, that even if we take off a bushel or two, it really wouldn’t affect the balance sheets all that much.”
Nearby September soybeans gave up earlier gains, which were due to dwindling supplies of last year’s crop, and plunged 3.5 percent.
“Obviously it’s a very volatile contract,” Linn said. “We could just as easily be right back up tomorrow.”
The market focus for wheat on Monday was moving from the conflict between Russia and Ukraine to the ample global wheat supply outlook, analysts said.
However, the market eyed wet weather in the U.S. northern Plains that has threatened the quality of the spring wheat crop.
Winnipeg ICE Futures Canada dollars per tonne
Canola Nov 2014 420.30 +2.00 +0.48%
Canola Jan 2015 425.80 +2.20 +0.52%
Canola Mar 2015 430.80 +2.40 +0.56%
Canola May 2015 431.90 +3.30 +0.77%
Canola Jul 2015 431.50 +3.10 +0.72%
Milling Wheat Oct 2014 204.00 -2.00 -0.97%
Milling Wheat Dec 2014 209.00 -2.00 -0.95%
Milling Wheat Mar 2015 217.00 -2.00 -0.91%
Durum Wheat Oct 2014 250.00 unch 0.00%
Durum Wheat Dec 2014 256.00 unch 0.00%
Durum Wheat Mar 2015 257.00 unch 0.00%
Barley Oct 2014 135.00 unch 0.00%
Barley Dec 2014 137.00 unch 0.00%
Barley Mar 2015 138.00 unch 0.00%
American crop prices in cents US/bushel, soybean meal in $US/short ton, soy oil in cents US/pound
Chicago
Soybeans Sep 2014 1125.75 -40.25 -3.45%
Soybeans Nov 2014 1029.25 -12.75 -1.22%
Soybeans Mar 2015 1042.5 -12.5 -1.18%
Soybeans May 2015 1047.75 -11.75 -1.11%
Soybeans Jul 2015 1051.5 -11 -1.04%
Soybean Meal Sep 2014 406.1 -27.2 -6.28%
Soybean Meal Oct 2014 354.4 -12.7 -3.46%
Soybean Meal Dec 2014 343.7 -9 -2.55%
Soybean Oil Sep 2014 32.74 +0.38 +1.17%
Soybean Oil Oct 2014 32.77 +0.37 +1.14%
Soybean Oil Dec 2014 32.96 +0.36 +1.10%
Corn Sep 2014 360 -5.5 -1.50%
Corn Dec 2014 367.5 -4 -1.08%
Corn Mar 2015 380.5 -3.75 -0.98%
Corn May 2015 388.5 -3.5 -0.89%
Corn Jul 2015 395.5 -3 -0.75%
Oats Sep 2014 377 -7 -1.82%
Oats Dec 2014 351.5 -3.75 -1.06%
Oats Mar 2015 338.75 -0.5 -0.15%
Oats May 2015 330.25 +1.75 +0.53%
Oats Jul 2015 327.75 +3.5 +1.08%
Wheat Sep 2014 542.5 -9.5 -1.72%
Wheat Dec 2014 554.5 -7.75 -1.38%
Wheat Mar 2015 574.25 -6 -1.03%
Wheat May 2015 584.25 -5 -0.85%
Wheat Jul 2015 592.25 -3.75 -0.63%
Minneapolis
Spring Wheat Sep 2014 617 -9.75 -1.56%
Spring Wheat Dec 2014 628.25 -6.25 -0.99%
Spring Wheat Mar 2015 639.5 -5 -0.78%
Spring Wheat Jul 2015 655.25 -5.25 -0.79%
Kansas City
Hard Red Wheat Sep 2014 622.75 -10.75 -1.70%
Hard Red Wheat Dec 2014 633.25 -10.75 -1.67%
Hard Red Wheat Mar 2015 642 -10 -1.53%
Hard Red Wheat May 2015 644.75 -9.5 -1.45%
Hard Red Wheat Jul 2015 635 -9 -1.40%
Light crude oil nearby futures in New York dropped 30 cents at $93.35 US per barrel.
The Canadian dollar at noon was 91.07 cents US, down from 91.32 cents the previous trading day. The U.S. dollar at noon was $1.0980 Cdn.
