By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker on Monday, hitting fresh three-month lows.
The most-active November contract tested the psychological C$620 per tonne level on several occasions during the session, settling just below the key chart point.
Losses in Chicago soyoil accounted for some spillover selling pressure in canola. However, soybeans turned higher while European rapeseed and Malaysian palm oil held near unchanged.
While persistent cool and wet conditions across parts of Western Canada remained somewhat supportive, most of the canola is thought to be in decent shape.
Read Also
ICE Midday: Canola tumbles to start week
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange opened the week’s trading with downward momentum, largely due…
Statistics Canada releases updated acreage estimates on Thursday, with the United States Department of Agriculture set to put out its own seeded area numbers on Friday.
There were an estimated 34,660 contracts traded on Monday, which compares with Friday when 44,052 contracts traded. Spreading accounted for 17,532 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, as heavy thunderstorm activity over the weekend led to localized flooding and likely crop damage to soybeans in Minnesota, Wisconsin and Iowa.
Solid demand for soymeal was also supportive, as the United States Department of Agriculture announced private sales of 228,000 tonnes of soymeal to the Philippines for delivery in the new crop year.
CORN was also underpinned by the adverse weather but was expected to have fared better than soybeans with the precipitation and moved lower in sympathy with wheat.
The USDA releases its latest acreage estimate on Friday, with ideas that U.S. corn seedings ended up above earlier expectations also bearish. Quarterly stocks data will also be published on Friday.
About a third of Brazil’s second corn crop has already been harvested, running well ahead of average, according to reports out of the country.
WHEAT futures were mixed, with a steady tone in Kansas City hard red winter wheat and losses in the other markets.
European wheat futures fell to their lowest levels in two months, as forecasts calling for hot and dry weather were seen as beneficial for developing wheat crops. The warmth will help fields ripen after rains and cooler temperatures earlier in the growing season caused developmental delays
Ideas that Russia’s wheat was in better shape than earlier expectations were also bearish, with Russia expected to remain a major world wheat exporter despite any production issues.
The U.S. winter wheat harvest is reportedly nearing the halfway mark.
