By Phil Franz-Warkentin, MarketsFarm
Winnipeg, July 15 (MarketsFarm) – The ICE Futures canola market was weaker on Monday, as improving weather conditions and losses in Chicago Board of Trade soybeans weighed on prices.
Bearish chart signals contributed to the declines, as fund traders added to their large net short positions.
Recent rainfall across dry areas of the Canadian Prairies also weighed on values, according to traders, although localized thunderstorm damage was likely.
Improving weather forecasts for some growing areas in the United States contributed to a selloff in CBOT soybeans and corn, which spilled into the canola market.
About 8,248 canola contracts traded on Monday, which compares with Friday when 11,328 contracts changed hands. Spreading accounted for 3,726 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, as chart-based profit-taking weighed on prices.
Updated weather forecasts calling for rain in some United States soybean growing areas contributed to the declines, as the moisture eased concerns over recent hot and dry forecasts.
The monthly U.S. soybean crush came in below expectations, which also weighed on values.
However, weekly U.S. soybean export inspections of about 850,000 tonnes were well above the same week a year ago, with about half of the business destined for China.
CORN was also lower, as the market ran into chart-resistance and backed away off of its nearby highs.
The shifting weather forecasts for the Corn Belt were behind some of the selling pressure.
Weekly U.S. corn export inspections of 675,000 tonnes were about half of what moved during the same week a year ago.
Opinions are divided on the condition of the U.S. corn crop, with some analysts expecting a slight downgrade from last week’s 56 per cent good to excellent reading, and others an improvement.
WHEAT futures were lower, as the advancing U.S. harvest weighed on prices. The country’s winter wheat harvest is thought to be nearing about two-thirds complete.
Condition ratings for spring wheat likely held steady on the week, according to trade estimates.