By Terryn Shiells and Jade Markus, Commodity News Service Canada
Winnipeg, August 17 – Canola contracts on the ICE Futures Canada trading platform ended softer on Monday, reversing earlier gains as the Chicago soyoil market also turned lower Monday afternoon.
Weakness in Malaysian palm oil futures and talk that the market’s technical bias is pointed lower added to the bearish tone.
Further downward pressure came from the large global oilseed supply situation and worries about slowing demand from China.
However, traders are also concerned about cold weather slowing canola crop development in Western Canada this week, which was supportive.
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Slow farmer selling, as they’re busy harvesting cereal crops and swathing canola, also underpinned values.
About 9,346 contracts traded on Monday, which compares with Friday when 18,764 contracts changed hands. Spreading accounted for 2,204 of the trades.
Milling wheat, barley and durum futures were untraded and unchanged.
SOYBEAN futures at the Chicago Board of Trade closed one to three cents per bushel higher Monday as a report from an offshoot of the USDA indicated a drop in planted soybean area this year.
The Farm Service Agency said due to excessive wetness in June, 2.17 acres of soybeans went unplanted, which is bullish.
However, gains were limited as a stronger US dollar makes the country’s commodities more expensive and less appealing, market watchers say.
Analysts say faced with much cheaper South American soybeans, US crops are seeing reduced demand.
SOYOIL prices settled weaker on Monday following neighbouring markets.
SOYMEAL closed higher Monday.
CORN futures closed one to two cents per bushel lower on Monday as cooler, wetter growing conditions in the US had a bearish effect on prices.
Wetter weather at this point in the growing season is favourable for corn.
But losses were limited as analysts say recent dryness in the eastern Corn Belt last week could have impacted shallow-rooted plants, which is bullish.
WHEAT futures in Chicago closed six to seven cents per bushel lower Monday, as a higher US dollar weighed on prices.
A continued lack of demand for US wheat also had a bearish effect on prices.
However, analysts say feed markets are helping wheat prices by providing some demand.
– US spring wheat harvest will be about 48 to 55 per cent done after this week, with mostly favorable weather conditions, market watchers say.
– El Nino could pose a threat to Australia’s wheat.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
