By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sep. 19 (MarketsFarm) – The ICE Futures canola market was weaker on Monday, as losses in outside markets weighed on values.
Chicago soyoil, European rapeseed and Malaysian palm oil futures all posted losses, which spilled over to weigh on canola.
Seasonal harvest pressure was another bearish influence, although scattered rains and the risk of frost in some areas will likely cause some delays over the next week.
Recent weakness in the Canadian dollar provided some support, with wide crush margins indicating that canola is underpriced relative to its product values.
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About 24,141 canola contracts traded on Monday, which compares with Friday when 33,972 contracts changed hands. Spreading accounted for 18,878 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, taking some direction from soymeal as adjustments to the product spreads saw meal move higher while soyoil posted losses.
The United States Department of Agriculture announced flash export sales of 136,000 tonnes of soybeans to China this morning.
Weekly export inspections data showed just over half a million tonnes of U.S. soybeans were shipped during the past week – which was up from the previous week.
Relatively favourable Midwestern weather helped keep a lid on the upside for soybeans.
CORN was pulled in two directions on Monday, as any spillover strength from the gains in soybeans were more than countered by sharp losses in wheat.
Weekly US corn export inspections came in at about 550,000 tonnes, which was up from the previous week
Seasonal harvest pressure was starting to be felt in the corn market, with about 10 per cent of the crop thought to be off the field by now.
WHEAT was down across the board, taking back Friday’s gains.
Weekly U.S. wheat export inspections came in at 790,000 tonnes, up slightly from the previous week.
Private forecasters IKAR raised their estimate on the size of Russia’s wheat crop to 99 million tonnes, which would be well above the USDA’s current forecast of 91 million tonnes for the country.
Seeding of the U.S. winter wheat crop is thought to be about 25 per cent done, although dryness in some areas will likely hurt germination.
Drought concerns in Argentina will also cut into the production prospects there.
