By Dave Sims, Commodity News Service Canada
Winnipeg, April 23 (CNS Canada) – The ICE Futures Canada canola market finished higher on Monday, as weakness in the Canadian dollar made canola more attractive to international buyers.
Spreading was a main feature of the day as investors continued to exit the front-month contract in favour of more-deferred values.
The threat of a rail strike is still a factor overhanging the market. While Canadian Pacific Railway and its workers postponed a potential shutdown over the weekend the issue is still weighing on investors’ minds.
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However, losses in vegetable oil and U.S. soybeans were bearish for values.
Canola is still quite expensive and improving weather conditions across the Prairies dragged on prices.
Around 22,343 canola contracts were traded on Monday, which compares with Friday when around 25,581 contracts changed hands. Spreading accounted for 15,172 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished lower to start the week, due to technical selling.
Exports from the United States have been underwhelming and there are ideas things could get worse due to the trade uncertainty with China. There is talk some orders could get cancelled if the two sides don’t work out their differences soon. In the meantime, China has turned to Brazil and Paraguay for supplies.
AgRural has pegged the Brazilian harvest at 91 per cent complete.
Corn futures ticked higher on Monday as some light buying re-entered the market.
Planting began over the weekend in the eastern U.S. Corn Belt.
China is preparing to auction off seven million tonnes of corn this week.
Chicago wheat futures chopped around in two-sided trade.
Rain in Kansas and Oklahoma was reported over the weekend, which was bearish as it should improve soil conditions. At last word the moisture was working its way south-east.
The July contract seems to have found temporary support at the US$4.72 per bushel mark.
