By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, April 3 (CNS Canada) – ICE Futures Canada canola contracts were narrowly mixed at Monday’s close, settling within 50 cents of unchanged in the most active months as the market reacted to conflicting outside influences.
Last week’s bearish US Department of Agriculture acreage and stocks data continued to weigh on Chicago Board of Trade soybeans on Monday, which put some pressure on canola throughout the session, according to participants.
Speculators were noted sellers, as the general technical bias remains pointed lower for canola as well.
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However, weakness in the Canadian dollar, which was down by roughly half a cent relative to its US counterpart, provided underlying support for canola and helped the Canadian oilseed post small gains in many months at the close.
Tightening old crop canola supplies, a lack of farmer selling, and attractive crush margins all provided additional support for canola, according to traders.
About 15,786 canola contracts were traded on Monday, which compares with Friday when 20,972 contracts changed hands. Spreading accounted for 9,238 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 closed two to eight cents per bushel weaker on Monday, as data from the United States Department of Agriculture (USDA) continued to pressure the market.
Soybean seeding in the US is expected to reach a record-high in 2017, data from the government agency says, which is bearish.
Stocks of the oilseed are high, up 13 per cent from the year prior (as of March 1, 2017), which added to the downside.
However, reports of flooding in parts of Argentina capped declines.
SOYOIL prices closed lower on Monday.
SOYMEAL closed mostly weaker on Monday.
CORN futures closed two to three cents per bushel stronger on Monday.
Investor short covering with the expectation for lower seeded acreage in the US this year underpinned values.
Ideas that flooding in Argentina could slow harvest activity in some areas added to the market’s strength.
WHEAT closed about one cent per bushel stronger on Monday, underpinned by ideas that acreage in the US will be lower this year.
Ideas than Russian exports will be lower this year, due to strength in the country’s currency added to the upside.
