By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 18 (MarketsFarm) – The ICE Futures canola market was stronger on Monday, finding spillover support from a rally in Chicago Board of Trade soyoil.
Gains in crude oil and Malaysian palm oil were also supportive, although European rapeseed futures were narrowly mixed on the day.
Hot weekend temperatures across the Canadian Prairies, with little rain aside from sporadic thundershowers in the nearby forecasts, contributed to the gains in canola.
However, a firm tone in the Canadian dollar tempered the upside to some extent.
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About 14,666 canola contracts traded on Monday, which compares with Friday when 15,530 contracts changed hands. Spreading accounted for 6,712 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Canola Nov 855.80 up 12.40
Jan 862.90 up 12.70
Mar 869.50 up 12.60
May 874.00 up 13.10
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, finding support from gains in crude oil and world equities, with an increased appetite for risk in the financial markets spilling into agricultural commodities as well.
Forecasts calling for hot and dry weather across the United States Midwest added to the gains, as the rising temperatures stress crops and cut into the yield potential.
Chart-based buying added to the gains, with some stops likely hit on the way up.
CORN was also underpinned by the hot U.S. weather forecasts, as the corn crop goes through its key pollination stage.
The excessive heat in Europe is cutting into the cut crop prospects for corn there, with the heatwave being described as the worst ever in recorded history.
Weekly export inspection data showed that just over one million tonnes of US corn was shipped during the past week. That was up slightly from the previous week.
WHEAT rallied higher in all three markets, recovering from five-month lows hit last week.
The lack of any movement on opening a corridor for Ukrainian grain exports through the Black Sea, despite talks between Russia and Turkey last week, accounted for much of the strength in the futures.
Signs of solid export demand, with both Egypt and Pakistan in the market with large tenders, were also supportive. U.S. wheat expected to price into some of that business.
The advancing northern hemisphere winter wheat harvests tempered the gains, as the hot weather hurting the yields for spring cereals came too late to do much damage to the winter wheat.
