By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 23 (MarketsFarm) – The ICE Futures canola market was weaker on Monday, nearing the lower edge of its well-established trading range as speculative selling and spillover from outside markets weighed on values.
Losses in Chicago soybeans accounted for some spillover selling in the Canadian oilseed, with European rapeseed also down on the day. However, soyoil held onto small gains at the final bell, while the Malaysian palm oil market was closed for the Lunar New Year with many other Asian markets also not trading for the holiday.
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Scale-down end user demand helped temper the losses in canola, as crush margins remain wide.
About 27,510 canola contracts traded on Monday, which compares with Friday when 31,900 contracts changed hands. Spreading accounted for 13,512 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted double-digit losses on Monday, with weekend rains easing dryness concerns in Argentina accounting for some of the selling pressure. However, more moisture will still be needed through the growing season.
Chart-based speculative selling added to the declines, with soybeans gapping lower in overnight trade.
Solid export demand underneath the market provided some support. The United States Department of Agriculture announced flash sales this morning of 192,000 tonnes of soybeans to unknown destinations.
The closure of Asian markets for the Lunar New Year limited some of the activity in the futures.
CORN was also pressured by the weekend rains in Argentina and speculative positioning.
Weekly export inspections data showed about 727,000 tonnes of U.S. corn was exported during the week ended Jan. 19. That was down slightly on both the week and year, with year-to-date U.S. corn exports of 11.5 million tonnes well off the 16.5 million tonnes exported by mid January a year ago.
WHEAT was lower across the board, as dry areas of the southern U.S. Plains saw some much-needed precipitation over the weekend with more moisture in the forecast for the next week.
The U.S. has exported 12.8 million tonnes of wheat during the crop-year-to-date, which was down by nearly half a million tonnes from the same time a year ago.
