By Dave Sims, Commodity News Service Canada
Winnipeg, December 4 (CNS Canada) – Canola contracts on the ICE Futures Canada platform posted modest gains on Monday, as strength in U.S. soybeans pointed the way higher.
“Soyoil and the Canadian dollar are battling it out over who has the most influence on canola,” said a trader in Winnipeg.
Dry conditions in South American soybean fields are still a concern for farmers, which lent support to futures.
Traders were positioning themselves ahead of Statistics Canada’s production estimates on Wednesday.
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However, weakness in vegetable oil markets was bearish for canola.
Support for the dominant January contract was pegged at C$505 per tonne by the trader.
Around 15,532 canola contracts were traded on Monday, which compares with Friday when around 21,310 contracts changed hands. Spreading accounted for 10,946 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures at the Chicago Board of Trade rose three to four cents on Monday.
The market took strength from gains in soymeal and some speculative buying.
The soybean crop in Argentina is 43 percent planted, which is up from last week’s total of 34 percent.
Corn fell four to five cents as traders took profits.
Corn planting is speeding along in Argentina with 36 percent of the seeds in the ground.
Corn exports from Brazil were 3.5 million tonnes in November. That is up more than three and a half times from last year.
Chicago wheat futures were three cents lower on Monday as large world supplies, especially those from the Black Sea region, dragged down U.S. prices.
Saudi Arabia bought half a million tonnes of wheat.
There are growing concerns about the wheat crop in Australia due to a massive storm that is brewing down there.
