By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, Sept. 8 – ICE Futures Canada canola contracts ended with only slight losses on Monday, undermined by weakness in Chicago soybean and soyoil futures.
Some light farmer hedging, profit taking on Friday’s rally and continued expectations of record large US soybean production this year were also bearish.
Though, the losses were only slight as the sharp downswing in the value of the Canadian dollar and steady demand for the commodity were supportive.
Concerns about forecasts calling for very cold weather that may bring snow and frost to some parts of Western Canada this week were also bullish. Temperatures could fall to minus five degrees Celsius in some places this week, which may spark a rally if the forecasts hold true.
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About 10,905 contracts traded on Monday, which compares with Friday when 26,659 contracts changed hands.
Milling wheat and barley futures were untraded and unchanged. Durum futures were also untraded, though the Exchange moved prices sharply higher.
SOYBEAN futures at the Chicago Board of Trade were 12 to 16 cents per bushel lower Monday, weighed down by large global supplies and favourable growing conditions.
Rainfall is expected in most regions of the northern Midwest this week, which favours filling crops, a report said.
The harvest is well underway in areas near the Gulf of Mexico, according to a report.
SOYOIL futures recorded losses on Monday, in sympathy with Malaysian palm oil, said an analyst.
SOYMEAL futures also dropped following soybeans.
CORN futures in Chicago settled seven cents per bushel lower Monday on reduced frost concerns in the US Midwest and the expected onset of a drier bias that stood to benefit plant growth.
Despite the approach of cooler weather from Canada, analysts don’t expect to see temperatures reach 28 degrees Fahrenheit or cooler in northern growing areas, according to a report.
Corn yields have been much better than expected, further cementing expectations of a large crop, said participants.
Export sales from the US continue to be sluggish, further adding to the bearish undertone, according to a report.
There are ideas the USDA will lift its estimates of US corn production.
WHEAT futures in Chicago ended one to two cents per bushel lower on Monday, pressured by falling corn prices and easing tensions between Ukraine and Russian-backed rebels.
The ceasefire between the two sides seems to have removed the threat of supply disruptions, which was bearish for prices, a trader said.
The USDA weekly crop progress report is widely expected to show a surge in harvest activity.
However, southeastern Australia is reportedly seeing cold temperatures that could add some risk of winterkill to the market.
• Ukraine has begun planting winter wheat for the 2015 harvest, according to a report.
• India is attempting to find ways of curbing atmospheric pollution after a recent study concluded emissions to the ozone layer cost the country 3.8 million tonnes of wheat in 2005.
• Projected world supplies of wheat are expected to increase in this week’s monthly USDA report.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
