By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, July 17 – The ICE Futures Canada canola market recorded mild losses on Monday, tracking declines in the US soy complex.
The market saw choppy trading during much of the session due to conflicting weather issues. On one hand, canola prices were boosted by the heat stress being felt across much of Western Canada. On the other, forecasts calling for rain dragged on prices.
One trader says the precipitation won’t mean nearly as much though, unless areas in southern Saskatchewan and southern Alberta get some significant moisture.
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“The rain looks to be in the north,” he said. “Canola areas in general should get some rain over the next few weeks but the south continues to miss out.”
He adds no one is sure whether the market is headed higher or lower right now.
The Canadian dollar was about a quarter of a cent lower compared to its US counterpart, which made canola more attractive on the international market.
However, losses in vegetable oil and the US soy complex pressured the market.
About 7,943 canola contracts traded on Monday, which compares with Friday when 11,391 contracts changed hands. Spreading accounted for 1,134 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed three to four cents per bushel lower on Monday, feeling pressure from favourable forecasts for the US Midwest.
Areas in the Midwest are expected to see showers this week, which have the potential to boost crop development.
Spill-over pressure from the Malaysian palm oil and soy oil markets added to the bearish tone.
However, ideas that some crops have already been lost limited the market’s weakness.
SOYOIL prices closed weaker on Monday.
SOYMEAL declined on Monday.
CORN futures closed unchanged to about one cent per bushel lower on Monday, also feeling pressure from forecasts for rain.
Spill-over weakness from soybeans was also a feature.
However, crop conditions from United States Department of Agriculture, due out after the close, were expected to be lower than average, which limited the market’s losses.
WHEAT dropped three to five cents per bushel on Monday.
The market was feeling pressure as the soft red winter wheat harvest gets underway.
Spill-over weakness from the soybean and corn markets added to the downside.
Minneapolis wheat futures closed higher, which limited losses in the Chicago Market.
