By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Nov. 16 (MarketsFarm) – The ICE Futures canola market was mixed on Monday, with losses in the most active front months and gains in some of the more deferred positions.
Speculative selling was a feature, as investors booked profits on the recent gains. A firmer tone in the Canadian dollar and ample supplies in the commercial pipeline also weighed on values.
However, end-user demand remains solid, providing some underlying support.
Gains in Chicago Board of Trade soybeans and soyoil also helped temper the declines in the Canadian oilseed.
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About 19,143 canola contracts traded on Monday, which compares with Friday when 23,419 contracts changed hands. Spreading accounted for 16,086 of the contracts traded.
SOYBEAN futures at the Chicago Board of trade were stronger on Monday, with broad gains in outside equity markets providing spillover support as solid economic data out of China and Japan, along with optimism over another COVID-19 vaccine, underpinned global markets.
Demand from both exporters and domestic crushers accounted for some of the day’s strength in soybeans.
Weekly inspection data showed more than 2.2 million tonnes of soybeans inspected for export from the United States last week, with most of it destined for China.
In addition, the latest data from the National Oilseed Processors Association showed that crushers in the U.S. processed 182.25 million bushels of soybeans in October, which topped expectations and marked a new record for the month.
However, improving moisture conditions in Brazil and Argentina put some pressure on values and tempered the gains.
CORN futures found spillover support from the gains in soybeans.
Weekly U.S. corn export inspections of 817,000 tonnes were up 18 per cent on the week, with China a noted customer.
The U.S. corn harvest is nearing completion, with about 95 per cent of the crop off the fields.
WHEAT futures were mixed on the day, with a steady tone in Minneapolis spring wheat and gains in the winter wheats.
U.S. wheat shipments are running slightly ahead of last year’s pace, with about 326,000 tonnes inspected in the latest weekly report.
Persistent weather concerns for Russia’s crop were also supportive.
However, good crop prospects in Australia kept a lid on the wheat market.
