By Dave Sims, Commodity News Service Canada
Winnipeg, August 14 – THE ICE Futures Canada canola market ended lower on Monday, tracking losses in the US soy complex.
Declines in vegetable oil and favorable rains in parts of Western Canada were bearish for the market.
Fund selling and a weak technical picture also dragged down prices.
Last week’s USDA report, which called for a massive soybean harvest in the US, undermined values.
However, the Canadian dollar was nearly a quarter of a cent weaker, compared to its US counterpart, which buoyed values.
The November contract enjoyed technical support at the C$500 mark.
Around 12,670 canola contracts were traded on Monday, which compares with Friday when around 6,355 contracts changed
hands. Spreading accounted for about 1,025 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
Soybeans were five to seven cents lower as the market continued to feel the weight of last week’s USDA report calling for a massive harvest.
Traders were selling off shorts and adjusting positions ahead of the release of export inspection numbers.
Favorable rains in the US Midwest were bearish for the market.
Corn bounced around in technical trade on Monday before ending with a gain of one to two cents.
The day started off lower due to the report, which forecast higher-than-expected yields in the US.
However, funds went bargain hunting before the close, which helped the market eke out a tiny gain.
Rain moved across Iowa and Nebraska which helped to replenish soil moisture in those key states.
Wheat ended mixed in technical trading.
Speculators have moved their net position from longs to shorts while the rally that lifted the wheat market in July appears to have subsided.
Export prices for Russian wheat continue to fall.