By Phil Franz-Warkentin, MarketsFarm
Winnipeg, March 11 (MarketsFarm) – ICE Futures canola contracts were weaker on Monday, although activity was thin and choppy.
Bearish technical signals, losses in Chicago Board of Trade soybeans, and concerns over declining Chinese demand all added to the softer tone in the market, according to participants.
Large old crop supplies and expectations for another big crop in 2019 also kept the general path of least resistance pointed lower.
However, support held to the downside amid ideas that canola was looking cheap for end users.
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The Canadian dollar and CBOT soyoil both held steady on Monday, providing some support as crush margins saw some improvement.
About 9,350 canola contracts traded on Monday, which compares with Friday when 11,933 contracts changed hands. Spreading accounted for 4,714 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, as the ongoing lack of any concrete trade deal with China weighed on values.
The United States Department of Agriculture reported private export sales of 926,000 tonnes of soybeans to China this morning. However, the business did little to support the market, as it was largely seen as confirmation of rumoured business from last week.
The advancing Brazilian harvest weighed on values, with just over half of the soybean crop now off the fields in the South American country, according to reports.
CORN futures were weaker, as last week’s move by the USDA to raise its corn ending stocks projection by 100 million bushels continued to weigh on values.
Relatively favourable prospects for Brazil’s second corn crop and heighted concerns over African Swine Fever in China also put some pressure on the corn market.
WHEAT futures were weaker, with the largest losses in the Chicago and Kansas City winter wheat contracts.
Ample world wheat supplies and losses in European wheat prices accounted for some of the selling pressure.
Fund traders are holding large short positions in wheat, but have little reason to cover those bets.
Heavy snow cover and a delayed start to spring across the northern states has raised some concerns over spring wheat seeding, with the possibility that acres won’t live up to expectations helping keep the Minneapolis futures well supported compared to the winter wheats.
