By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was stronger on Monday, posting solid gains in sympathy with the Chicago soy complex.
European rapeseed and Malaysian palm oil futures were also higher on the day, adding to the underlying strength in canola as the Canadian oilseed was thought to be looking underpriced on the global market.
Oversold price sentiment and speculative positioning contributed to the gains, although canola remained below several key moving averages.
The larger supply situation confirmed by Statistics Canada last week remained a bearish influence overhanging the market.
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ICE canola falling further
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange extended Wednesday’s downturn this morning, pressured by declining comparable oils….
There were an estimated 47,513 contracts traded on Monday, which compares with Friday when 53,751 contracts traded. Spreading accounted for 33,682 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were underpinned by solid end user demand from both exporters and domestic crushers on Monday, climbing to their highest levels in over a week.
The United States Department of Agriculture reported private export sales of 132,000 of U.S. soybeans to unknown destinations this morning.
Uncertain South American production prospects also continued to underpin the soy market, with parts of Brazil still too dry and others too wet. Seeding of the country’s soybean crop is reportedly nearing completion, with less then 10 per cent of intended acres left to go in the ground.
Weekly U.S. soybean export inspections were just below a million tonnes, leaving the year-to-date exports of 19.7 million tonnes down by 16 per cent.
CORN futures held closer to unchanged, with the bias to the downside as any spillover support from the rally in soybeans was countered by the losses in wheat.
Delays seeding soybeans in Brazil that may limit the country’s second corn crop provided some support, although conditions for corn crops in Argentina look relatively favourable for the time being.
Weekly U.S. corn export inspections came in at about 711,000 tonnes, which was down by about 500,000 tonnes from the previous week but up from the year ago level.
WHEAT was down sharply, as a lack of fresh export news weighed on values.
After China made major purchases of U.S. soft red wheat all last week, ideas that the country may now be done with buying for the time being accounted for some of the selling pressure.
The recent strength in U.S. wheat futures was also making values less attractive to other global buyers, with cheaper supplies from competing sources.
Weekly U.S. wheat export inspections were up 50 per cent compared to the previous week, at just under 300,000 tonnes.
