By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, February 6 – THE ICE Futures Canada canola market finished stronger to start the week, following gains in the US soy complex.
Weakness in the Canadian dollar relative to its US counterpart was bullish for canola, as it made the commodity cheaper for international buyers.
Strength in Malaysian palm oil was supportive while global demand for oilseeds remains strong.
Canola lagged US markets to the upside. A Winnipeg-based trader said canola may have been rebalancing after making gains over the past few weeks.
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However, losses in crude oil were bearish for canola.
The crop in South America is shaping up to be a massive one, which overhung the market.
Milling wheat, barley and durum were untraded.
About 19,920 canola contracts traded on Monday which compares with Friday when 12,442 contracts changed hands. Spreading accounted for about 15,236 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up by five to nine cents per bushel on Monday, as a return of Chinese buying interest following the week-long Lunar New Year holiday provided some support.
Weekly US soybean export inspections of 1.6 million tonnes came in above trade expectations and provided further support.
A rally in soyoil added to the firmer tone in soybeans, according to participants.
However, relatively favourable South American crop conditions and expectations for large crops out of the region limited the advances.
SOYOIL futures settled higher on Monday, as Malaysian palm oil stocks dropped to their tightest levels in five months.
SOYMEAL futures were stronger on Monday.
CORN futures in Chicago were steady to down one-and-a-half cents per bushel on Monday, as the market ran into chart resistance and turned lower.
Declines in crude oil and the large South American crop prospects contributed to the weaker tone.
Weekly corn export inspections of 1.1 million tonnes were in line with expectations.
WHEAT futures in Chicago were down by seven to eight cents per bushel on Monday, with speculative selling a feature as values backed away from nearby highs.
Ample world wheat supplies and improving weather forecasts out of the Black Sea region were bearish for values.
Strength in the US dollar index also weighed on values.
However, weekly US wheat export inspections of 618,000 tonnes were well ahead of the previous week, which was somewhat supportive.
