By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Aug. 21 (CNS Canada) – ICE Futures Canada canola contracts posted small losses on Monday, as the market saw some profit-taking after recent strength.
Canola gained ground relative to the US soy complex last week, leaving the Canadian oilseed open to a correction lower, according to traders. Declines in Chicago Board of Trade soybeans on Monday added to the softer tone, although strength in soyoil provided some underlying support.
Tight old crop ending stocks and uncertainty over new crop production also helped limit the losses, as the canola market continues to work to ration some demand, according to participants.
About 7,210 canola contracts traded on Monday, which compares with Friday when 9,487 contracts changed hands. Spreading accounted for 2,978 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Soybean futures at the Chicago Board of Trade were down five cents per bushel to up two cents on Monday, with losses in the most active nearby months as forecasts calling for relatively favourable weather across the US Midwest over the next week weighed on values.
However, activity was thin and choppy, as traders looked for results from an annual crop tour going on this week across the major corn and soybean growing regions of the country.
Solid export demand provided underlying support, according to participants, with the USDA reporting sales of 661,000 tonnes of US soybeans to China and other unknown destinations. Gains in soyoil were also supportive.
Rains in the Midwestern forecasts were also bearish for corn, as the moisture will be welcome at this stage of crop development.
Early reports from the crop tour were showing corn yields all over the map, with the large divergence in crop conditions keeping some caution in the market.
Wheat futures were down by five cents to as much as 14 cents per bushel, with the largest losses in Minneapolis spring wheat as it had lagged the other US wheat markets to the downside recently.
Ample world wheat supplies and a firmer tone in the US dollar put some pressure on wheat today.
Improving crop conditions in Europe and Australia were also bearish.
Rains in the northern plains had a mixed influence on wheat. While the moisture was likely welcomed in some cases, it is also causing harvest delays and could lead to quality issues.