By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Sept. 18 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Monday, as the market continued to correct off of the nearby lows hit last week.
Cold overnight temperatures in parts of Saskatchewan provided some underlying support for canola, although the frosts were likely too late to cause much damage to the fields still left to be harvested, according to a broker.
A weaker tone in the Canadian dollar, which was trading back below 82 US cents, also helped underpin the futures.
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Statistics Canada releases model-based production estimates tomorrow, and positioning ahead of the report kept some caution in the futures. Industry participants generally expect to see an upward revision from the survey-based canola crop estimate of 18.2 million tonnes.
Losses in Chicago Board of Trade soyoil and seasonal harvest pressure tempered the gains in canola.
About 13,635 canola contracts traded on Monday, which compares with Friday when 16,307 contracts changed hands. Spreading accounted for 8,296 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
Soybean futures posted small losses on Monday, as solid export demand was countered by the mounting seasonal harvest pressure.
The USDA reported export sales of 261,000 tonnes of US soybeans to China and an additional 126,000 tonnes to other unknown destinations this morning.
Concerns over dryness in Brazil and excessive moisture in Argentina provided additional support, as the adverse weather in South America could lead to seeding delays.
However, Midwestern weather remains relatively favourable, and reports of early yields coming in better than expected put some pressure on values.
Corn was down on the day, as the market lacked any fresh export news of its own and early yield reports are generally beating expectations.
Losses in crude oil and strength in the US dollar also weighed on corn, according to participants.
Wheat was mixed on the day, with losses in Chicago and Kansas City winter wheat contracts and gains in Minneapolis spring wheat.
Ample world wheat supplies and bearish chart signals accounted for some of the selling pressure.
However, tight supplies of higher protein wheat kept the Minneapolis futures supported. Drought concerns in Australia and the wetness in Argentina also helped underpin the US futures.
