By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
Winnipeg, June 19 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Monday, as supportive chart signals and persistent weather concerns provided support.
While crop conditions were generally thought to be improving across most of Western Canada, enough areas of concern remain to keep some weather premiums in the market, according to traders pointing to ongoing dryness in parts of Saskatchewan and excessive moisture in regions of Alberta.
Solid end user demand and a lack of significant farmer selling also provided support.
However, continued strength in the Canadian dollar served to limit the upside.
A lack of spillover support from the Chicago Board of Trade soy complex also weighed on values, with soyoil moving lower on the day.
About 22,465 canola contracts traded on Monday, which compares with Friday when 14,936 contracts changed hands. Spreading accounted for 11,888 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
CORN futures in Chicago dropped six to eight cents per bushel to start the week due to mostly favourable weather conditions in the Midwest. While temperatures are soaring across much of the US corn belt timely rains have helped alleviate concerns over dryness.
The export market has slowed down due to the ongoing Chinese auction of state corn supplies.
Brazil’s Safrina corn harvest has been pegged at 67 million tonnes.
SOYBEAN futures at the Chicago Board of Trade finished one cent lower in narrow trading.
This week’s export inspection numbers were within analysts’ expectations.
The quality of the crop is improving and expected to come in at 68 percent good to excellent in this afternoon’s USDA’s report. This would compare to last week’s reading of 66 percent.
SOYOIL futures ended 29 points lower on Monday.
SOYMEAL futures finished higher on Monday, with the nearby contract breaking above a major resistance point.
WHEAT futures in Chicago finished one cent higher on Monday.
There are still concerns over dryness in the US Northern Plains, however some light rain is expected by the weekend.
Harvests in Texas and Oklahoma are virtually complete but protein levels are said to be on the weaker side.