WINNIPEG, Dec. 14 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts closed stronger on Monday, spurred higher by comparable vegetable oils.
The nearby January contract neared C$600 per tonne in early trade, before settling at C$596.30, its highest level since 2013.
Chicago soyoil and Malaysian palm oil were both higher on the day, providing spillover strength to canola. Nearby soyoil contracts were up by about half of a cent on the day.
Slight losses in the Canadian dollar were supportive of canola prices. The loonie was around 78.2 U.S cents.
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SOYBEAN futures at the Chicago Board of Trade (CBOT) were stronger on Monday, following reports that weekend rains in South America were less than initially forecast. However, the rains have eased concerns about crop shortfalls this spring.
Argentina’s grain inspectors and shipping workers continue to strike, demanding danger pay due to the COVID-19 pandemic. The strike has significantly slowed down exports out of the Rosario shipping hub.
CORN futures were also stronger today, supported by gains in the soy complex and crude oil markets.
Though rains are expected in key growing regions of South America, market participants will continue to watch forecasts for indications of crop yields. Trade expectations on South American corn production ranged from 105 million to 112 million tonnes for Brazil, and 48 million to 50 million tonnes for Argentina.
WHEAT futures were also stronger today.
Russia’s grain export quota will remain fixed at 17.5 million tonnes until June 30, according to the country’s economy minister. The grains export quota and wheat tax are an effort to stabilize rising domestic food prices.
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