By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, March 12 (CNS Canada) – ICE Futures Canada canola contracts were steady to lower at Monday’s close, with losses in the front months and a firmer tone in the new crop contracts.
Speculative positioning after last week’s sharp declines was a feature, according to participants. Increased farmer hedges and a lack of significant end user demand on the other side also weighed on values.
Improving moisture forecasts out of Argentina were slightly bearish for the oilseeds in general, although soybean futures at the Chicago Board of Trade edged up the day amid ideas that the moisture may be coming too late to provide much benefit to the dry crops there.
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About 13,774 canola contracts traded on Monday, which compares with Friday when 15,057 contracts changed hands. Spreading accounted for 5,974 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were higher on Monday, as ideas that the market was looking overdone to the downside brought in some buying interest.
However, concerns that China may impose retaliatory tariffs on soybeans from the United States kept some caution in the market.
Brazil’s soybean harvest is nearing the halfway mark according to reports out of the country. That’s a bit behind last year’s pace, but in line with the average for this time of year.
CORN futures held within a penny of unchanged, seeing some consolidation to start the week.
Weekly U.S. corn export inspections of nearly 1.4 million tonnes were well above last week’s level and provided some support.
Private sales of 100,000 tonnes of U.S. corn to Japan and an additional 250,000 tonnes to other unknown destinations were also reported by the USDA this morning.
ALL THREE U.S. WHEAT futures markets were higher, with the largest gains in Minneapolis spring wheat as the wheat spreads saw some adjustment after last week’s losses.
Large world wheat supplies remained a bearish influence, although persistent dryness across dryness across much of the major U.S. winter wheat growing regions were a supportive influence on the other side.
Weekly wheat export inspections came in at about 390,000 tonnes, which was about in line with last week.
