By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Nov. 25 (MarketsFarm) – The ICE Futures canola market declined to its lowest levels in three weeks on Monday, testing key chart support as speculative selling weighed on prices.
Losses in Chicago Board of Trade soyoil and the ongoing strike at Canadian National Railway added to the bearish tone, according to participants.
However, good demand from domestic crushers provided some underlying support.
A softer tone in the Canadian dollar also helped underpin the market.
About 19,887 canola contracts traded on Monday, which compares with Friday when 12,359 contracts changed hands. Spreading accounted for 14,920 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, as large losses in soyoil spilled over to weigh on values.
Uncertainty over trade talks between the United States and China kept some caution in the market, as investors grow tired of the endless stream of conflicting reports.
Solid weekly export inspections of 1.9 million tonnes were somewhat supportive, with total inspections running ahead of last year’s pace, according to the latest data.
U.S. markets will be closed this Thursday for Thanksgiving, and positioning ahead of the holiday is expected to be a feature the next two days.
CORN was higher, as forecasts calling for adverse weather across much of the northern Plains and Midwest over the next week were somewhat supportive. About five to 15 per cent of the U.S. corn crop still unharvested.
Weekly U.S. corn export inspections at just over 600,000 tonnes were in line with the previous week, but about half of what moved during the same week a year ago.
Total U.S. corn export inspections during the crop year to date of 5.6 million tonnes are running well behind last year’s pace.
The USDA released a correction to private export sales of 132,000 and 119,000 tonnes announced last week, as the business was actually soybean sales and not corn.
WHEAT futures posted solid gains, with the largest advances in Chicago soft wheat.
Cool and wet conditions across the U.S. winter wheat growing regions gave the market a boost, as the weather could hurt the crop before it enters dormancy.
Weekly U.S. wheat export inspections came in at about 421,000 tonnes. That was down slightly from the previous week, but up on the year. Total U.S. wheat export inspections during the marketing year to date are running about 22 per cent ahead of the 2018 pace.
