By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Jan. 13 (MarketsFarm) – ICE Futures canola contracts were mixed on Monday, with losses in the most active front months and gains in the more deferred positions.
Losses in Chicago Board of Trade soyoil and ample supplies in the commercial pipeline contributed to the declines, according to participants.
However, canola found some independent support and lagged soyoil to the downside, as a slowdown in fund and farmer selling provided support, according to a broker.
Increased export demand was also thought to be finding its way into the futures.
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About 16,290 canola contracts traded on Monday, which compares with Friday when 23,720 contracts changed hands. Spreading accounted for 10,194 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, with chart-based positioning a feature.
Losses in outside vegetable oil markets, including Malaysian palm oil, accounted for some of the spillover selling pressure.
The United States and China are reportedly still set to sign Phase One of a trade deal later this week, although details of what exactly is being signed remain sparse. Chinese Vice Premier Liu He will be in Washington to sign the deal on Wednesday.
Weekly U.S. soybean export inspections of 1.1 million tonnes were up slightly from the previous week, according to U.S. Department of Agriculture data.
Large South American crop projections put some pressure on values.
CORN settled with modest gains, as investors adjusted positions ahead of the U.S./China trade deal.
Weekly U.S. corn export inspections were down on the week, coming in at just under 500,000 tonnes. However, the USDA reported a separate private sale this morning of 137,000 tonnes to South Korea that provided some support.
Recent rain in Brazil helped conditions for the corn crop there, although forecasts are once again calling for warmer and drier weather.
WHEAT futures were lower, seeing a correction to start the week after Friday’s gains.
Weekly US wheat export inspections of about 475,000 tonnes were up on the week, but still below what moved during the same week a year ago.
Ukraine’s 2019 wheat crop was pegged at 75 million tonnes by the country’s economic ministry, which would be up five million tonnes on the year.
There was some optimism that the U.S./China trade deal will lead to more U.S. wheat sales to the country.
