By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Jan. 4 (MarketsFarm) – The ICE Futures canola market was mixed on Monday, with losses in the front months and gains in the more deferred positions.
Canola hit fresh contract highs in overnight activity, trading as high as C$646.70 per tonne in the most active March contract. Gains in Chicago Board of Trade soybeans, amid persistent South American weather concerns, provided spillover support.
However, soybeans settled well off their own overnight highs, while soyoil was lower in Chicago.
Speculative profit-taking was a feature in the canola market, on ideas that prices were looking overbought.
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About 30,177 canola contracts traded on Monday, which compares with Thursday when 16,805 contracts changed hands. Spreading accounted for 16,920 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade held onto small gains on Monday, although settled well below the contract highs hit in overnight activity.
Soybeans had been up by as much as 40 cents per bushel in overnight activity, before profit-taking came forward to weigh on prices.
The United States exported 1.3 million tonnes of soybeans during the week ended December 31, according to the country’s latest export inspections data. That marked the first week below two million tonnes in three months.
Weather conditions in South America remained at the forefront of the soybean market, with the seven to 10 day forecasts calling for more hot and dry weather.
CORN settled within a penny of unchanged in the most active months at Monday’s close, retreating from early gains.
News that China was looking at expanding its own corn acres accounted for some of the selling pressure
Weekly U.S. corn export inspections came in at just over 900,000 tonnes. That was down on the week, but roughly double what moved during the same week a year ago.
While oilseed processors in Argentina reached an agreement to their labour dispute, grain inspectors remain on strike in the South American country – limiting exports.
WHEAT futures were mixed, with gains in Chicago soft wheat and a steady to lower tone in the Minneapolis and Kansas City hard wheats.
Winter storms across the southern U.S. Plains over the weekend brought some much needed moisture to the dry area, with more precipitation in the forecast.
Weekly U.S. wheat export inspections came in at about 325,000 tonnes, which was down on both the week and the year.
