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North American Grain/Oilseed Review: Canola falls with soyoil

By Phil Franz-Warkentin, Commodity News Service Canada

Winnipeg, Feb. 11 (CNS Canada) – ICE Futures canola contracts were weaker on Monday, as losses in Chicago soyoil and other world vegetable oil markets weighed on prices.

Chart-based speculative selling contributed to the declines, as prices fell to their lowest levels in three weeks.

Large commercial supplies and concerns over Chinese demand also weighed on values, according to traders.

However, weakness in the Canadian dollar provided some support. Relatively solid crush margins also kept domestic processors interested on a scale down basis.

About 25,432 canola contracts traded on Monday, which compares with Friday when 44,256 contracts changed hands. Spreading accounted for 21,708 of the contracts traded.

SOYBEAN futures were lower on Monday, with soyoil leading to the downside.

Trade talks between the United States and China are taking place in Beijing this week, keeping some caution in the futures. A looming Friday deadline before another possible U.S. government shutdown also kept traders on edge.

Weekly U.S. soybean export sales came in at just over a million tonnes, with Chinese business accounting for nearly half of the movement, according to a report from the U.S. Department of Agriculture.

The USDA also announced a 120,000 tonne sale of soymeal to Ecuador.

The advancing Brazilian harvest weighed on prices, with progress running well ahead of normal.

However, hot and dry conditions during the growing season cut into yield prospects in the South American country, providing some underlying support. Brazil’s AgRural pegged the crop at 112.5 million tonnes, which would be 3.5 million tonnes below the USDA’s latest estimate.

CORN futures posted small losses, with strength in the U.S. dollar index behind some of the weakness as the rising currency may cut into export demand. for some fresh fundamental news to push it one way or the other.

Weekly U.S. corn export inspections of 743,000 tonnes were down by 17.5 per cent from the previous week.

WHEAT futures were mixed, as the three markets saw some spread adjustments.

The USDA announced flash sales of 128,000 tonnes of hard red winter wheat to Nigeria this morning, and an additional 120,000 tonnes of soft red winter wheat to Egypt.

Weekly U.S. wheat export sales of 562,000 tonnes were well above the previous week’s level.

While the business was supportive for prices, the U.S. continues to face stiff competition from Russia.

Commodity Future Prices

Canola
2019-02-01 13:19
Price Change
Mar482.400.70
May490.400.80
Jul497.700.80
Nov495.501.40

Prices are in Canadian dollars per metric ton

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