By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, December 12 (CNS Canada) – ICE Futures Canada canola ended lower on Monday, feeling spillover weakness from Chicago Board of Trade soybeans.
Soybeans declined as traders are watching South American crop conditions. Argentina has seen dry weather, but forecasts for showers pressured the market.
Strength in the Canadian dollar against its US counterpart added to the downside.
About 20,110 canola contracts traded on Monday, which compares with Friday when 22,558 contracts changed hands.
Spreading accounted for about 13,198 of the contracts traded.
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Milling wheat, durum and barley futures were all untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade were down by 3 to 6 cents per bushel on Monday, seeing a modest correction to start the week after Friday’s rally.
A fresh export sale of 256,600 tonnes of US soybeans to China did provide some underlying support. However, expectations that international demand will soon shift to South America helped keep the overall bias to the downside on the day.
Improving weather conditions in Argentina contributed to the bearish tone, as some much needed rain is now in the forecast across much of the dry soybean growing regions of the country.
SOYOIL futures managed to hold onto small gains on Monday, despite the losses in soybeans, as strength in crude oil and the outside vegetable oil markets provided support.
SOYMEAL futures were down on Monday, following soybeans.
CORN futures in Chicago were narrowly mixed for most of the day on Monday, but managed to move higher by the close as gains in crude oil provided some support to the ethanol-linked grain.
Crude oil was rising on the back of ideas that OPEC (the Organization of Petroleum Exporting Countries) would actually be implementing production cuts.
However, large US supplies and relatively favourable South American crop prospects limited the upside.
WHEAT futures in Chicago were steady to up two cents per bushel on Monday, seeing some late-day strength after posting losses for most of the session.
Snowfall hit a good portion of the US winter wheat crop over the weekend, which was helping lessen the winterkill concerns that had propped up the futures in recent sessions.
Ample world wheat supplies remained bearish as well.
