By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 13 (MarketsFarm) – The ICE Futures canola market was weaker on Monday, seeing a continuation of the previous week’s selloff as speculators remained on the sell side of the market.
Losses in the Chicago soy complex and a firmer tone in the Canadian dollar added to the weakness in canola. European rapeseed and Malaysian palm oil were also lower on the day.
Global economic uncertainty following Friday’s collapse of the Silicon Valley Bank kept some caution in financial markets to start the week.
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Canola crush margins remain historically wide, which should have kept some end user buying in the market – at least on a scale-down basis.
About 32,876 canola contracts traded on Monday, which compares with Friday when 45,345 contracts changed hands. Spreading accounted for 18,840 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade fell below previous chart support on Monday, as broad speculative selling in the financial markets spilled over to weigh on values.
The advancing Brazilian harvest was another bearish influence, although the poor crop prospects out of Argentina remained supportive as forecasters continue to drop their production estimates for the drought-afflicted South American country.
Weekly United States soybean export inspections of 618,000 tonnes were up from the previous week, but off what moved during the same week a year ago. Year-to-date U.S. soybean exports of 43.3 million tonnes were running a million tonnes ahead of last year’s pace.
CORN weakened with speculative selling, although spillover from gains in wheat provided some support.
Weekly U.S. corn export inspections came in at just under a million tonnes, with year-to-date movement of 16.3 million tonnes well off the 25.9 million tonnes exported by the same time a year ago.
Seeding of Brazil’s second corn crop has been delayed due to untimely rain but is still about 25 per cent complete, according to reports out of the country.
WHEAT held onto gains on ideas futures were looking oversold after recent losses, with the largest gains in Minneapolis spring wheat.
Talks to extend the Black Sea grain corridor for Ukrainian exports are underway this week, keeping some caution in the wheat market.
Weekly U.S. wheat export inspections of about 250,000 tonnes brought year-to-date exports to 15.9 million tonnes – only about 300,000 tonnes off the year-ago pace.
