By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, Jan. 9 (CNS Canada) – ICE Futures Canada canola settled with small gains at Monday’s close, as the speculative selling that weighed on values for most of the day ran out of steam and end user buying came forward to provide support.
Speculators were on the sell side for most of the day, as bearish technical signals and a lack of significant buying interest added to the weaker tone.
However, gains in Chicago Board of Trade soybeans and soyoil provided underlying support, and the strength there eventually spilled over to underpin canola as well.
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Domestic crush margins improved slightly on the day, which likely helped bring in some commercial demand in the final minutes, according to participants.
About 10,240 canola contracts were traded on Monday, which compares with Friday when 21,422 contracts changed hands. Spreading accounted for 2,810 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed about 10 to 11 cents per bushel stronger on Monday, as the already wet Argentina received additional rains.
Standing water in areas of Argentina poses a threat to production, with additional rains expected to cause further crop-loss.
Strong weekly export inspections reported by the United States Department of Agriculture (USDA) added to the upside.
SOYOIL prices closed higher, tracking gains in Malaysian palm oil.
SOYMEAL closed higher on Monday.
CORN futures were about two cents per bushel higher on Monday, also underpinned by rain in Argentina.
Stronger export inspections reported by the USDA were also bullish.
Recent losses in the US dollar added to the upside.
WHEAT closed four to six cents per bushel higher on Monday, propped up by concerns about US winter wheat production.
US winter wheat crop condition ratings reported by the USDA are behind what market watchers had expected, which is bullish.
Ideas a key report due out on Thursday from the USDA will estimate 2017 production lower than the previous year, which added to the upside.
