By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 2 (CNS Canada) – ICE Futures Canada canola contracts settled lower on Monday, seeing a modest correction to start the week as values hold within their sideways trading range.
Losses in Chicago Board of Trade soybeans and better-than-expected harvest weather in parts of Alberta over the weekend kept canola under pressure for most of the day, according to participants. However, there were still areas where cool and wet conditions, including snow, caused delays.
Ample nearby supplies also weighed on prices, as the latest data showed farmers were still making steady deliveries off of the combine.
A weaker tone in the Canadian dollar, which dipped below 80 U.S. cents helped limit the losses. Chart signals were also supportive, as the November contract held above the C$490 per tonne mark.
About 24,085 canola contracts traded on Monday, which compares with Friday when 17,586 contracts changed hands. Spreading accounted for 11,632 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Soybean futures at the Chicago Board of Trade posted losses on Monday, as the market saw a correction following Friday’s gains.
Seasonal harvest pressure added to the declines, as Midwestern farmers continue to make progress bringing in this year’s crops.
Improving moisture conditions for soybean fields in Brazil were also bearish, although seeding is running a bit behind normal in the major soybean growing country.
The US dollar index was also sharply higher on Monday, which limited some of the offshore buying interest.
Corn prices were also lower on Monday, with seasonal harvest pressure, the strong US dollar, and declines in crude oil all contributing to the declines.
Chinese markets are closed this week for an annual holiday, limiting some of the activity in the grains and oilseeds.
Wheat was down on Monday, with the biggest losses in Minneapolis spring wheat.
The larger than expected production estimates from the USDA last week remained a bearish influence, especially for spring wheat. The crop was unexpectedly revised higher by the government agency on Friday, despite the drought concerns throughout the growing season.
Large Russian grain supplies are also overhanging the wheat market, although declining production estimates out of Australia provided some support.