By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Sept. 20 (MarketsFarm) – The ICE Futures canola market was lower on Monday, as broad weakness in most outside financial and commodity markets sparked by default concerns at a Chinese real estate company spilled over to weigh on prices.
Chicago Board of Trade soyoil futures fell to their lowest levels in three months, which contributed to the declines in canola.
Seasonal harvest pressure was another bearish influence, although concerns over the size of Canada’s drought-stricken crop remained supportive.
Weakness in the Canadian dollar also helped temper the declines in canola.
About 17,426 canola contracts traded on Monday, which compares with Friday when 22,259 contracts changed hands. Spreading was a feature, accounting for 10,780 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, as general economic uncertainty spilled into the grains and oilseeds.
In addition to the global economic concerns, soybeans were also starting to feel some seasonal harvest pressure with weather conditions remaining relatively favourable across the Midwest.
The United States soybean harvest is just getting started, with trade estimates placing it at about five per cent complete.
Solid export demand remained supportive underneath the market, although there were no fresh sales reported this morning. Chinese markets were closed Monday and Tuesday for the Mid-Autumn festival.
The situation was similar in CORN, with chart-based selling contributing to the losses as prices neared some major technical support levels.
The U.S. corn harvest is estimated to be about 10 per cent harvested ahead of the USDA’s weekly report out after Monday’s close.
WHEAT was down in sympathy with soybeans, corn and most everything else.
With the advancing corn and soybean harvests, U.S. farmers are also reportedly making good progress seeding next year’s winter wheat crop.
Some private estimates are predicting an increase in planted area.
Good export demand was supportive on the other side. Uncertainty over the size of Canada’s spring wheat crop also helped temper the declines.