By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 16 (CNS Canada) – ICE Futures Canada canola contracts were weaker at Monday’s close, retreating from earlier gains as losses in Chicago Board of Trade soybeans weighed on prices.
Canola briefly climbed to fresh one-month highs, but ran into resistance above the psychological C$500 per tonne level in the nearby November contract.
Improving harvest weather in parts of Western Canada and ample supplies in the commercial pipeline also weighed on values, according to participants.
However, persistent concerns over harvest delays in parts of Alberta and Saskatchewan provided some underlying support.
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Weakness in the Canadian dollar, which dipped back below 80 US cents, was also somewhat supportive.
About 37,140 canola contracts traded on Monday, which compares with Friday when 34,507 contracts changed hands. Spreading accounted for 19,136 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 were lower on Monday, as the market saw a correction to start the week following recent gains.
Improving U.S. harvest weather and reports of better moisture conditions in Brazil were also bearish for values.
U.S. soybean processors crushed 136.4 million bushels of soybeans in September, according to data released by the National Oilseed Processors Association this morning. The crush came in below average trade guesses and was well off the 142.4 million tonnes processed in August.
Solid export demand was somewhat supportive, as the USDA reported export sales of over 200,000 tonnes of US soybeans to unknown destinations.
Corn prices were also pressured lower by forecasts calling for warm and dry weather across most of the Midwest over the next week, as the conditions should help farmers make good progress bringing in the crop.
Wheat was lower, with chart-based selling a feature as an early attempt at moving higher ran into resistance.
Ample world wheat supplies were also still weighing on wheat, with large crops out of Russia entering the global export market.
