By Terryn Shiells and Dave Sims, Commodity News Service Canada
Winnipeg, June 15 – Canola contracts on the ICE Futures Canada trading platform ended mostly lower on Monday, following the declines seen in Chicago soyoil futures, analysts said.
Some downward pressure came from news that rainfall hit the dry regions of Western Canada over the weekend and forecasts calling for rain later this week. But, some areas didn’t get enough rain, as the showers were light and sporadic.
However, weakness in the Canadian dollar limited the losses, as did the need to keep weather premiums in the market, as the growing season in North America is far from over.
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Worries that US farmers may not be able to wrap up soybean planting this week, as tropical storms are expected to bring a lot of rain to the US Midwest, were also supportive.
About 36,241 contracts traded on Monday, which compares with Friday when 19,969 contracts changed hands. Spreading accounted for 7,716 of the trades.
Milling wheat, durum and barley futures were untraded. Though, the Exchange moved wheat prices lower to reflect losses in the US futures market.
CORN futures on the Chicago Board of Trade ended four to six cents per bushel lower Monday, feeling downward pressure from a stronger US dollar and beneficial weather.
Forecasts for rain in the US Midwest are expected to assist in development of the crop, analysts said.
Demand for corn is weak domestically while large global inventories have also tempered foreign exports as well. There is more speculation China is preparing to curb imports of corn along with substitutes like sorghum and barley.
SOYBEANS were mixed on Monday, as the nearby contracts were weighed down by large world supplies while planting delays were supportive for the more-deferred values.
Excess moisture has delayed planting efforts in the US. The latest trade guesses suggest just 82% of the crop is in the ground, which would be below the five-year average being 90%.
Better than expected crush data from the National Oilseed Process Association for May was also supportive for soybeans.
SOYOIL futures in Chicago ended 45 points lower on the day.
SOYMEAL futures finished lower.
CBOT wheat futures were down sharply, with the July contract settling below the psychologically important US$5.00 a bushel level as a firming US dollar combined with weak export demand to send prices lower.
Domestic demand was also weak which increased the losses, according to a report.
There are concerns over wheat quality in states like Kansas and Oklahoma as excess moisture in the US southern plains continues to stress the crop. But, early reports are showing crops in better condition than expected.
• Russia has reportedly began focusing on increasing the amount of grain and rapeseed it ships to China on an annual basis.
• The registered carry-over of stocks and grains in Kazakhstan totaled 7.525 million tonnes as of June 1, according to a government report.
• Egypt has announced it will shorten its local wheat-buying season. The original plan was to hold local buying from mid-April to mid-July but that will be altered in the coming weeks.
