By Dave Sims, Commodity News Service Canada
Winnipeg, September 25 – The ICE Futures Canada canola market finished slightly higher on Monday due to speculative trade and ideas the market was under-bought.
“Canola continues to be sturdy, holding up better than US markets,” said a trader in Winnipeg.
Harvest delays in Alberta and recent export interest were bullish for prices.
“Export sales are still 21 percent behind last year but have picked up lately,” said the trader.
However, losses in the US soy complex and Malaysian palm oil markets were bearish for prices.
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Better weather is expected to descend on the Prairies in the coming days, which undermined values.
Around 21,538 canola contracts were traded on Monday, which compares with Friday when around 21,620 contracts changed hands. Spreading accounted for 5,290 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans finished 11 to 13 cents weaker due to harvest pressure and weather forecasts indicating rain will fall in parched regions of Brazil.
US soybean export inspections were pegged at just over 1 million tonnes, which was within traders’ estimates.
Soybean yields in the US are better than expected.
Corn futures on the Chicago Board of Trade finished relatively unchanged.
According to the USDA’s weekly report, US corn export inspections were around 739,000 tonnes, which was on the low end of analysts’ expectations.
Traders have already begun to take some positions ahead of Friday’s US quarterly stocks and grains report.
Chicago wheat futures posted gains of three to four cents a bushel on technical buying.
Minneapolis wheat futures were up as much 14 cents on the day.
Crops in Australia and Argentina have been stressed by poor weather, which was supportive for the market.
US wheat export inspections were higher than expected. According to the USDA, 500,000 tonnes were marked for export. Some analysts had expected just 350,000 tonnes.
The Russian ruble has been increasing in value recently which was supportive for US futures.
