By Dave Sims, Commodity News Service Canada
Winnipeg, March 19 (CNS Canada) – The ICE Futures Canada canola complex finished weaker on Monday, following losses in U.S. soybeans.
Farmer selling added to the downside and some funds were liquidating positions.
Despite today’s losses, canola is still holding up relatively well, compared to its U.S. counterpart.
The May, July and November contracts have comparable numbers in the open interest, which may limit the volatility, according to a Winnipeg-based trader.
However, recent weakness in the Canadian dollar, relative to its U.S. counterpart, helped prop up prices somewhat.
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Global demand for oilseeds remains steady.
Around 12,717 canola contracts were traded on Monday, which compares with Friday when around 12,551 contracts changed hands. Spreading accounted for 5,102 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market recorded steep losses on Monday as rain fell in the eastern portion of Argentina. The moisture is likely too late to help the bulk of the crop but could aid some later-seeded fields.
Brazil’s soybean harvest is slightly ahead of schedule and looks to be record large.
Speculators were liquidating their long positions.
Corn futures dropped on Monday in sympathy with soybeans and wheat.
Brazil’s corn crop is about 34 percent harvested, which is behind the average of 45 per cent.
Long positions are under pressure to liquidate as the technical appear pointed lower.
Chicago wheat futures dropped on Monday in the wake of yesterday’s USDA report.
A mix of rain and snow in Kansas over the weekend sent prices tumbling as the state finally got some badly needed moisture. Eastern Texas and Oklahoma are also expected to receive rain this week.
Demand continues to be a problem for U.S. wheat exporters based on recent sales data.
