By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, August 31 – THE ICE Futures Canada canola market finished lower Monday, weighed down by the Canadian currency.
Malaysian palm oil and European rapeseed futures were also lower which pressured canola as did the volatility in outside financial markets, according to an analyst.
The long-term technical trend lies to the downside, according to a report.
However, gains in US soyoil, soybeans and crude oil limited the losses.
Adverse weather over the weekend in parts of the Prairies was also supportive for prices.
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Canola appears to have technical support at the C$470 per tonne mark, according to an analyst.
Milling wheat, barley and durum were all untraded.
Around 19,985 canola contracts were traded on Monday, which compares with Friday when around 25,467 contracts changed hands.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade were up by one to four cents per bushel at Monday’s close, recovering from earlier losses as the market found some support to the downside.
Soybeans traded at fresh four month lows in early activity, but managed to bounce higher as gains in crude oil provided some spillover support for the agricultural sector.
The need to keep some weather premiums in the futures ahead of the harvest was also supportive. However, nearby conditions remain relatively favourable across the Midwest, according to participants.
Ideas that Chinese demand would back away due to the economic uncertainty weighed on prices, despite news of a fresh sale to the country.
SOYOIL settled with small gains on Monday, recovering from earlier losses as a bounce in crude oil spilled into the vegetable oil markets as well.
SOYMEAL futures were weaker on Monday, with positioning against soyoil behind some of the selling pressure.
CORN futures in Chicago were narrowly mixed on Monday, settling within a penny of unchanged as the market reacted to the price swings in the outside equity and energy markets.
Uncertainty over the size of the US crop also kept some caution in the market, as traders squared positions ahead of the month end.
Forecasts are turning hotter in some parts of the Midwest, which may cut into the yield potential, according to some analysts.
WHEAT futures in Chicago were mixed on Monday, with gains in the front months and a softer tone in the more deferred positions. Minneapolis and Kansas City futures were steady to up as much as six cents per bushel by the close.
The US missed out on yet another Egyptian tender, which highlighted the fact that US wheat is overpriced in the global market.
However, the US dollar was showing some weakness late in the day, which may encourage some fresh business going forward.
– Germany’s wheat crop was forecast at 26.4 million tonnes by the country’s agriculture department, which was down by about 5% from the previous year but above average trade estimates of 25.7 million tonnes. The quality of the 2015 crop was also said to be ‘highly satisfactory.’
– Iran reportedly now has enough wheat in reserves that it will not need to import more supplies during its current marketing year.
– The Australian Bureau of Meteorology is forecasting beneficial rainfall for Western Australia over the next three months, which should help wheat crops as they go through the yield setting stage.
