By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 11 (CNS Canada) – ICE Futures Canada canola contracts fell to their weakest levels in two-months on Monday, as losses in Chicago Board of Trade soybeans spilled over to weigh on values.
Speculators were noted sellers, as the nearby January contract dipped below the 200-day moving average.
Ample supplies in the commercial pipeline and talk of a slowdown in exporter demand contributed to the weaker tone, according to a broker.
However, domestic crushers reportedly remain good buyers on a scale-down basis. Oversold price sentiment also helped temper the declines.
The Canadian dollar held relatively steady, providing little direction.
About 32,812 canola contracts traded on Monday, which compares with Friday when 27,179 contracts changed hands. Spreading accounted for 22,158 of the contracts traded.
Soybean futures at the Chicago Board of Trade were down on Monday, as rising production estimates out of Brazil and better crop weather in Argentina weighed on values.
Positioning ahead of tomorrow’s USDA supply/demand report kept some caution in the market.
Oversold price sentiment and expectations for rising demand from the feed sector provided some underlying support for the futures.
Corn futures also lost ground on the day, taking some direction from soybeans.
Speculative positioning ahead of Tuesday’s USDA report was a feature with corn still stuck in a rather narrow trading range lacking any clear direction of its own.
Chicago and Kansas City wheat futures hit fresh contract lows, as the large world wheat supply situation and increasing export completion weighed on values.
However, Minneapolis spring wheat lagged to the downside as supplies of higher protein wheat remain relatively tight.