By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Jan. 30 (CNS Canada) – ICE Futures Canada canola contracts were down sharply on Monday, as losses in Chicago Board of Trade soybeans and soyoil weighed on values.
Speculators were noted sellers, liquidating long positions, according to participants.
A firmer tone in the Canadian dollar, relatively favourable South American crop conditions, and a general sense of uncertainty over US trade policy all contributed to the softer tone in canola.
However, canola held up reasonably well compared to soybeans, lagging the US oilseed to the downside as solid end user demand provided some support, said traders. While canola crush margins lost about C$7 per tonne on the day, the product values were down by closer to C$17, according to a broker.
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About 31,667 canola contracts were traded on Monday, which compares with Friday when 12,267 contracts changed hands. Spreading accounted for 18,736 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed 17 to 26 cents per bushel lower on Monday.
Mostly favourable South American soybean growing weather was one source of the declines.
China is celebrating the New Year holiday this week, which is expected to cut into demand, adding to the downside.
Uncertainty about US trade relations under President Donald Trump added to the downside.
A general sense of uncertainty following changes to US immigration policy was also bearish for markets.
SOYOIL prices closed lower on Monday.
SOYMEAL closed weaker on Monday.
CORN futures were three to five cents per bushel weaker on Monday.
Uncertainty about the future of American trade and immigration pressured values.
Ideas that the US may introduce an import tariff to Mexico also had a bearish effect on prices.
Losses in crude oil added to the bearish tone.
WHEAT closed five to six cents per bushel weaker, also pressured by a general sense of uncertainty.
Losses in soybeans and corn were also bearish.
Speculative selling added to the losses.
