By Terryn Shiells, Commodity News Service Canada
WINNIPEG, May 25 – The ICE Futures Canada canola market ended mixed after a day of quiet, directionless trade as US markets were closed for Memorial Day.
Without any trade in the Chicago soy complex, canola remained in a narrow range throughout the day as traders were wary of pushing values too far one way or the other.
Sentiment that canola is expensive compared to other oilseeds was bearish, as was the large global oilseed supply situation.
Weakness in Malaysian palm oil futures also weighed on canola, though a firmer tone in European rapeseed futures was supportive.
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Worries about tight Canadian canola supplies, and dryness in some parts of the western Prairies were bullish as well.
About 4,784 contracts traded on Monday, which compares with Friday when 17,354 contracts changed hands. Spreading accounted for 2,986 of the trades.
Milling wheat, durum and barley futures were untraded and unchanged.
US grain and oilseed markets were closed for Memorial Day on Monday, and are set to re-open for trade at 7:00 p.m. CT Monday evening. Traders are likely to focus on US and world weather for corn, soybeans and wheat.
• Forecasts are calling for more rain in US winter wheat growing regions this week, which will benefit some crops, but be unfavourable for others, depending on their stage of development.
• India’s government is encouraging the industry to make advanced arrangements for wheat seeds for the next growing season, as unfavourable weather this spring may reduce the amount of good quality seeds available.
• Russia is proposing a new wheat export tax, just 10 days after ending its previous tariffs that began in February 2015. The government cited the need to protect livestock producers from high feed costs as the reason for the new tax.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
