By Dave Sims, Commodity News Service Canada
Winnipeg, May 7 (CNS Canada) – The ICE Futures Canada canola market finished lower on Monday, tracking losses in U.S. soybeans.
Warm weather across Western Canada helped farmers make good seeding progress over the weekend, which dragged on prices. The favorable temperatures are reinforcing expectations that a large canola crop will be coming this year.
Canola is looking expensive relative to soybeans and other oilseeds.
However, strength in vegetable oil was supportive for canola.
Dry weather in Brazil, the poor soybean crop in Argentina and China’s reluctance to buy U.S. soybeans are raising hopes that demand for Canadian canola will grow.
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Around 8,353 canola contracts were traded on Monday, which compares with Friday when around 16,596 contracts changed hands. Spreading accounted for 3,202 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market suffered sharp losses to start the week as a new survey by the Wall Street Journal predicted soybean stocks in the United States would rise in Thursday’s stocks report.
Asian palm oil prices are also on the march higher, which pressured soybeans.
Drier weather over the weekend helped U.S. producers make good soybean planting progress. However wetter weather is on the horizon. The crop is roughly 12 per cent planted.
Corn futures ended lower in technical trading.
There are ideas that production in South America and the U.S. will be lower, which bolstered prices.
The survey pegged global stockpiles in 2018/19 at 182 million tonnes, which would be 13 million tonnes fewer than the previous year.
Chicago wheat futures finished weaker with profit-taking.
The chart picture for wheat is also looking bearish, which caused some traders to opt for safer positions.
Dryness is becoming a real problem for farmers in the Black Sea region.
