By Marlo Glass, MarketsFarm
WINNIPEG, Jan. 6 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts finished in the red on Monday after initially starting the day stronger.
One trader said canola prices had “shown some resilience” given the strong Canadian dollar and lower soyoil prices on the Chicago Board of Trade. High crush margins had encouraged buying, which supported values.
However, bearish influences eventually outweighed earlier support. The Canadian dollar held steady at just over 77 U.S. cents, keeping a lid on values.
On Monday, 22,025 contracts were traded, which compares with Friday when 20,607 contracts changed hands. Spreading accounted for 15,478 contracts traded.
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SOYBEAN futures at the Chicago Board of Trade (CBOT) were slightly stronger on Monday, supported by strong export demand.
According to last week’s export sales report from the U.S Department of Agriculture (USDA), soybean inspections were 41 per cent higher than the same week the year prior, totaling over 963,000 tonnes.
With rain in the forecast, growing conditions in Brazil and Argentina kept pressure on soybean values. Above average rainfall is expected in northern regions of Brazil, and Argentina is also expecting to receive average precipitation.
However, soyoil futures were about half a cent weaker on the day, in order to remain competitive with lower values for Malaysian palm oil.
CORN futures finished slightly lower today. Export inspections were higher than the week, but still lagging behind last year’s pace. Export sales totaled about 550,000 tonnes.
The Energy Information Administration (EIA) reported that weekly ethanol production decreased by 17,000 barrels per day last week. Ethanol stocks dropped 500,000 barrels to total 21 million.
Brazil’s corn crop may be at risk of drought due to lack of rain in key growing regions. While northern Brazil is expecting rain, Rio Grande do Sul is not. Brazilian agronomists are “evaluating the negative impacts of recent dryness in the corn crop,” and are expected to reduce production estimates to be below 6 million tonnes for the region.
WHEAT futures were mixed on Monday, supported by strong export demand. Last week, the USDA reported wheat inspections totaled just over 345,000 tonnes. That’s an increase of 33,000 tonnes when compared to the previous week.
European wheat futures hit six-month highs last week, but have since given back some gains. Winter weather has improved in Russia and Ukraine, and the threat of winterkill has been lower.
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