By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, April 16 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Monday, taking some direction from declines in the Chicago Board of Trade soy complex.
Continued strength in the Canadian dollar contributed to the weaker tone, as the rising currency cuts into crush margins.
However, lingering winter conditions across much of Western Canada provided underlying support, with snow hitting parts of Alberta on Monday.
The poor weather has producers holding out for better prices, while spring road bans were also hampering country movement, said a broker.
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About 16,225 canola contracts traded on Monday, which compares with Friday when 22,567 contracts changed hands. Spreading was a feature, accounting for 10,448 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were lower on Monday, as speculative profit-taking and expectations for large soybean acres in the United States this year weighed on values.
U.S. soybean processers crushed 171.86 million bushels of soybeans in March, which was up by about 12 per cent from February and a record for the month, according to a report from the National Oilseed Processors Association. The drought in Argentina was said to be shifting more crushing activity to the U.S. The active crush is mainly tied to soymeal demand, and the sizeable increase in soyoil stocks on the month put some pressure on that side of the market.
Weekly U.S. soybean export inspections were up on the week, but were still behind last year’s pace.
CORN futures posted small losses, seeing some spillover selling pressure from declines in soybeans and wheat.
However, concerns over seeding delays and a possibility of some intended Midwestern corn acres going into soybeans instead provided underlying support.
WHEAT futures were lower, as the rain and snow system delaying corn seeding in the northern Midwest brought some much needed precipitation to the southern Plains. More rain is in the forecasts for later this week, and the improving moisture conditions weighed on wheat values.
Large world supplies and lacklustre export demand for U.S. wheat also weighed on values. However, concerns over seeding delays for North American spring wheat were slightly supportive.
