By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, March 13 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Monday, as losses in Chicago Board of Trade soyoil and chart-based selling weighed on values.
Soyoil was down by roughly half a cent per pound, which cut into canola crush margins and kept processors on the sidelines, according to participants.
A move below former chart support, at C$520 per tonne in the May contract, triggered additional speculative sell stops and exaggerated the losses in canola.
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However, expectations for tightening canola supplies going forward provided some underlying support. Uncertainty over how much canola is still left in the field to be harvested this spring also kept some caution in the market.
About 13,398 canola contracts were traded on Monday, which compares with Friday when 12,000 contracts changed hands. Spreading accounted for 9,024 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although wheat prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were down half a cent to three cents per bushel on Monday.
Front contracts declined as supplies come on stream from South America.
Weakness in the Malaysian palm oil and nearby US soy oil market added to the downside.
However, deferred contracts were able to hold support after sharp declines in previous sessions, when soybeans fell to a two-month-low.
Losses in the US dollar further underpinned values.
SOYOIL prices closed lower on Monday, tracking Malaysian palm oil.
SOYMEAL closed stronger on Monday.
CORN futures closed about two to three cents per bushel lower on Monday, pressured by favourable production conditions in South America.
Brazil is expected to see rain in the short-term, which is bearish.
Competing global supplies added to the downside in the US.
WHEAT closed eight to ten cents per bushel weaker on Monday, declining with forecasts for rain in the US southern plains that will support wheat crops.
Concerns about demand and high global supplies added to the downside.
