By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
July 7, 2014
Winnipeg – ICE Futures Canada canola contracts traded to both sides of unchanged on Monday, finishing with small gains in the most active nearby contracts and a softer tone in some of the more deferred positions.
Losses in the CBOT soy complex did weigh on canola prices for most of the day. However, concerns over lost acres and damage due to excess moisture in parts of Manitoba and Saskatchewan remained supportive overall, as market participants continued to try and calculate the extent of the damage.
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A lack of significant farmer selling, a weaker tone in the
Canadian dollar, and improving end user demand also helped provide some independent support for canola, said traders.
About 19,210 canola contracts were traded on Monday, which compares with Friday when 1,615 contracts changed hands.
Milling wheat, durum and barley futures were untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade ended six to 26 cents per bushel lower Monday, pressured by favourable weather forecasts for US crops and last week’s estimate by the USDA which called for a record 84.8 million acres to be planted this year.
Up to six times the normal amount of rain fell in parts of Iowa and Illinois over the past few weeks, according to weather reports. Those two states are generally considered to be the two largest US growers of the crop. Approximately 75% of the soybeans in those two states were considered to be in good or excellent condition last week, according to the USDA.
Rainy weather in some areas of the US over the past few months has caused a limited number of farmers to switch some crops to soybeans, according to a report.
SOYOIL futures were lower, following soybeans.
SOYMEAL futures were lower.
CORN futures in Chicago dropped to a nearly four-year low on Monday, falling six to nine cents per bushel, as favourable weather over the long weekend improved growing conditions throughout the US.
Mild, wet weather is aiding corn as it enters the crucial pollination stage, according to a report.
Anticipation of another good harvest has prompted traders who were playing long positions to sell their contracts and liquidate their positions, an analyst said.
Super Typhoon Neoguri is threatening China’s corn belt, according to a report.
WHEAT futures in Chicago slid to their lowest level in almost four years, dropping 23 to 24 cents per bushel amid slumping US sales and booming global supplies.
Since the beginning of June, 1.78 million metric tonnes of US wheat has made its way to buyers overseas, down nearly a fifth from the same time last year, according to the USDA. France and the Ukraine continue to act as chief rivals to the US in export sales.
Global wheat output is expected to rise 1.4% in the year ended May 31, according to a report.
– Iran is looking to import 300,000 tonnes of milling wheat to satisfy demand after poor domestic harvests, according to traders.
– Wheat prices fell 7.9% globally in June due to an expected rise in European production, according to the United Nations.
– Russia continues to offer wheat out of the Black Sea at a much lower price than the US, according to a report.
Settlement prices are in Canadian dollars per metric ton.
