By Dave Sims and Jade Markus, Commodity News Service Canada
WINNIPEG, Feb 1 (CNS) – THE ICE Futures Canada canola market ended on a weaker tone Monday, as action within the Canadian currency combined with a weak US soy complex to send the market lower.
European rapeseed futures were lower which dragged on soybeans.
Farmer selling has been reasonably steady while it appears South America could soon be selling large supplies of soybeans.
The Canadian dollar was stronger relative to its US counterpart which made canola less attractive to foreign buyers.
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However, canola found some technical support. The March contract tried but was unable to sink below the C$470 per tonne mark.
Good demand, both from crushers and shippers provided some support.
As values fell a few traders went bargain hunting which limited the losses.
Around 30,197 canola contracts were traded on Monday, which
compares with Friday when around 29,146 contracts changed hands. Spreading accounted for about 22,930 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade closed about one to three cents per bushel weaker on Monday, pressured by weaker crude oil prices.
Soybeans are a component of biodiesel, and weaker energy prices make processing the commodity less appealing.
Weaker-than-expected manufacturing data from China further pressured prices on Monday, as it is another signal of economic slowdown in the country.
China is the top importer of oilseeds.
SOYOIL prices settled weaker on Monday.
SOYMEAL closed weaker on Monday, tracking nearby grain and oilseed markets.
CORN futures closed about one cent per bushel lower on Monday, also pressured by weaker crude oil futures.
Corn is used in ethanol production, and lower prices reduce the processing outlook.
Producer selling is limited, market watchers say, as farmers are waiting for better prices.
WHEAT closed four to five cents per bushel weaker on Monday, feeling spillover pressure from losses in other markets.
Weak US exports also pressured prices.
Storms in the US limited losses on Monday.
– Wheat is trending sideways, analysts say.
– Despite lower prices, there is little-fresh demand for US wheat, market watchers say.
