WINNIPEG, Nov. 2 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were lower on Monday, as light trade activity and a lack of supportive forces kept pressure on prices.
One Winnipeg-based trader said losses were spurred by profit-taking, as some participants have taken to the sidelines in anticipation of volatile market activity ahead of the United States presidential election.
Losses in comparable vegetable oils kept pressure on canola prices, as nearby Chicago soyoil contracts lost about four tenths of a cent on the day.
Strength in the Canadian dollar also kept a lid on canola prices, as the dollar was around 75.3 U.S. cents at midday.
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On Monday, 18,305 contracts were traded, which compares with Friday when 24,362 contracts changed hands. Spreading accounted for 8,654 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were weaker on Monday.
In the upcoming Fats and Oils report from the United States Department of Agriculture (USDA), analysts expect about 171.3 million bushels of soybeans were crushed in September.
Argentina’s government has passed a back to work order, which halted strikes that began last Friday.
Brazilian soybean planting is 35 per cent complete, compared to the 44 per cent average for this time of year.
Brazil received rains across the northeastern growing region over the weekend, with provinces in the norther region seeing some precipitation. However, there is little rain forecast over the next week, stressing germination and early growth of the soybean crop.
CORN futures were also weaker today.
This morning, the USDA reported an export sale of 204,000 tonnes of corn, for delivery to unknown destinations during the current marketing year.
Trade estimates peg the US corn harvest at around 85 per cent complete.
Private firms estimate 2020/21 corn production in Brazil at 116.4 million tonnes. That’s an increase of about 900 thousand tonnes from prior forecasts.
WHEAT futures were steady to higher on Friday.
One private firm reported that scientists see good prospects for the 2021 Ukrainian wheat crop, despite the widespread drought that affected planting.
Wheat exports were around 287,0000 tonnes last week, which is 2.4 per cent lower than the same week last year. The top destination was South Korea with 82,602 tonnes of wheat.
China sold 2.699 million tonnes of wheat from state reserves, as a feed corn substitute due to historically high corn prices.
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