North American Grain/Oilseed Review: Canola weakens at final bell

By Phil Franz-Warkentin, MarketsFarm

Winnipeg, April 15 (MarketsFarm) – ICE Futures canola contracts settled with small losses in the most active months on Monday, after posting gains for most of the session.

Canola held within a narrow range, lacking any clear direction as participants await some fresh market moving data, according to a trader.

Gains in Chicago Board of Trade soybeans and a weaker tone in the Canadian dollar provided some support, while losses in soyoil tempered any upside potential.

Trade tensions between Canada and China remained a bearish influence in the market, according to traders.

On the other side, the trade uncertainty has led to expectations for reduced canola acres this spring, which provided some support. Statistics Canada releases its first survey-based acreage estimates of the year on April 24.

About 29,048 canola contracts traded on Monday, which compares with Friday when 34,866 contracts changed hands. Spreading accounted for 22,964 of the contracts trade.

SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, as solid monthly crush data provided some support.

The National Oilseed Processors Association reported that a total of 170 million bushels of soybeans were crushed in the United States in March, which beat expectations and marked the second largest total for the month on record. The data showed a high oil content and lower meal yield, with the resulting strength in soymeal helping take beans up as well.

The U.S. Department of Agriculture reported private export sales of 140,000 tonnes of beans to unknown destinations this morning.

Uncertainty over U.S./China trade relations remained a bearish influence in the background, with investors still waiting for some clearer signals on the trade front.

CORN futures were stronger to start the week. Friday’s Commitment of Traders report showed funds were holding a record large net short position in corn, which left the market open to some short covering.

Seeding delays across parts of the Midwest also provided some support.

WHEAT futures were steady to lower, as large world supplies and the fact the U.S. continues to miss out on export opportunities weighed on values.

The slow start to spring wheat seeding in the northern states helped limit the losses in Minneapolis futures, while crop conditions for winter wheat are generally thought to be favourable.

Futures Prices as of April 15, 2019

Canola
Price Change
Milling Wheat
1970-01-01 00:00
Price Change
Durum
1970-01-01 00:00
Price Change
New Barley
1970-01-01 00:00
Price Change

Prices are in Canadian dollars per metric ton

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