By Glen Hallick, MarketsFarm
WINNIPEG, Dec. 13 (MarketsFarm) – Although Intercontinental Exchange (ICE) canola futures closed higher on Monday after a day of choppy trading.
A trader said the spec funds continued to push up canola, despite the massive long position that has been built up. He speculated the funds could press ahead with bumping up canola through to the New Year. However, when it comes time for profit-taking canola values are very likely to tumble hard and rapidly.
Declines in the Chicago soy complex and European rapeseed weighed on canola values. However, moderate gains in Malaysian palm oil were supportive. Small losses for global crude oil prices pressured edible oil values.
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At mid-afternoon the Canadian dollar was weaker , with the loonie at 78.13 U.S. cents, compared to Friday’s close of 78.65.
There were 21,903 contracts traded on Monday, which compares with Friday when 13,401 contracts changed hands. Spreading accounted for 18,338 contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Price Change
Canola Jan 1,009.80 up 4.20
Mar 984.00 up 4.10
May 947.40 up 4.00
Jul 896.00 up 2.00
SOYBEAN futures at the Chicago Board of Trade (CBOT) were lower on Monday, as export shipments remained behind last year’s pace.
The United States Department of Agriculture (USDA) said export inspections of soybeans amounted to approximately 1.72 million tonnes for the week ended Dec. 9 That’s down 26.1 per cent from the previous week. Year-to-date soybean inspections were nearly 25.45 million tonnes and 21.3 per cent behind those from a year ago.
A series of tornadoes devastated Kentucky and surrounding states on Friday evening, which killed well over 100 people.
CORN futures were lower on Monday taking pressure from soybeans.
Corn export inspections were up 4.6 per cent on the week at 810,395 tonnes. The year-to-date was a little short of 10.21 million tonnes and stood 15.6 per cent behind this time last year.
In South America, southern Brazil and northern Argentina are forecast to receive rain over the next six to 10 days, which would help to alleviate dry conditions.
Argentina estimated its coming corn production at 57 million tonnes, compared to last week’s USDA forecast of 54.4 million.
WHEAT futures were mixed on Monday with gains for Chicago and Kansas City while Minneapolis stepped back.
The USDA reported wheat export inspections of 245,000 tonnes were only 0.5 per cent behind those last week. Year-to-date export inspections total 11.39 million tonnes, which is 17.1 per cent behind those a year ago.
Russia raised its wheat export tax to US$91 per tonne.
IKAR increased its projection for Russia’s 2021 wheat crop by 1.5 per cent at 76.7 million tonnes.
Ukraine reported its grain exports for 2021/22 of 28.3 million tonnes are up almost 21 per cent compared to a year ago.