North American Grain/Oilseed Review – Canola Dips Ahead Of StatsCan Report

By Dave Sims and Jade Markus, Commodity News Service Canada

Winnipeg, June 29 – THE ICE Futures Canada canola market finished mostly lower Monday as traders positioned themselves ahead of the release of Tuesday’s Statistics Canada acreage report.

Speculative trading was also a feature as some investors were forced out of the July contract ahead of its expiry.

“There was some spec money cycling out of canola, they’ll do that in the commodity markets quite a bit, canola gets high so they start cycling some dollars out of canola and into cheaper commodities like corn, beans and wheat,” a trader remarked.

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The US soy complex and Malaysian palm oil market were both weaker which contributed to the losses.

However, persistent dry conditions across much of Western Canada supported values as concerns about yield and quality are mounting.

The Canadian dollar was slightly weaker against its American counterpart which made canola more attractive to out-of-country buyers.

Around 20,310 canola contracts were traded on Monday, which compares with Friday when around 27,335 contracts changed hands. Spreading accounted for 7,414 of the contracts traded.

Milling wheat and durum were both untraded while 25 barley contracts changed hands.

Settlement prices are in Canadian dollars per metric ton.

Winnipeg, June 29 – SOYBEAN futures at the Chicago Board of Trade closed one cent per bushel higher to seven cents per bushel lower Monday in anticipation of a USDA acreage report to

be released on June 30.
Brazilian and Argentinean soybean supplies have ample stocks featuring lower prices, analysts say. If US soybean prices stay high then buyers may look toward South American markets, which was bearish.
Rainy forecasts in the US Midwest could mean farmers are not able to seed more acres, which would support prices.

SOYOIL prices settled stronger on Monday, as weakness in the rupee caused prices to strengthen, analysts said.

SOYMEAL closed lower on Monday following soybean futures.

CORN futures closed mixed on Monday as increased farmer selling weighed on prices.

However, continued wet weather in the US farm belt means the crop is at increased risk for disease, which is bullish.

Analysts say they expect to see a one to two per cent drop in the crop’s condition in the USDA’s weekly crop report, due out late Monday afternoon.

WHEAT futures in Chicago closed ten to eighteen cents per bushel stronger, hitting a five-month high Monday amid worries over dryness affecting Canadian wheat crops, and moisture affecting US crops.

Parts of the US Plains are harvesting crops, but market watchers say recent rains may have impacted yields, which is bullish.

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