By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Feb. 3 (MarketsFarm) – ICE Futures canola contracts settled with small gains on Monday, seeing a corrective bounce after touching fresh contract lows earlier in the session.
Chart-based speculative selling weighed on prices Monday morning as weakness in the energy sector, ongoing concerns over the Wuhan coronavirus and lack of significant end user demand all weighed on values.
However, some bargain-hunting was uncovered at the lows and the oversold canola market managed to turn higher.
A softer tone in the Canadian dollar and gains in Chicago soyoil provided underlying support.
Read Also
North American Grain and Oilseed Review: Canola stronger on comparable oils
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures were stronger on Thursday, in gleaning support…
About 21,286 canola contracts traded on Monday, which compares with Friday when 33,117 contracts changed hands. Spreading accounted for 13,828 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted gains on Monday, seeing some consolidation after recent losses.
Solid export demand contributed to the firmer tone in soybeans, with the United States Department of Agriuculture reporting weekly export inspections of 1.3 million tonnes and year-to-date shipments running slightly ahead of the 2018/19 pace.
The USDA also reported a private export sale of 130,000 tonnes of soybeans to Egypt Monday morning.
However, ongoing uncertainty over the coronavirus and possible economic downturn in China remained a bearish influence. The advancing Brazilian harvest also weighed on values.
CORN was down on Monday, with strength in the U.S. dollar index behind some of the weakness as the rising currency makes U.S. grain more expensive for international buyers.
Weekly U.S. corn export inspections of 562,000 tonnes were well below what moved during the same week a year ago, while total-shipments during the crop year-to-date were running at only half the rate of the previous year.
WHEAT futures were mixed, with a softer tone in Minneapolis spring wheat at the close and small gains in the Chicago and Kansas City contracts. Wheat prices were thought to be seeing some consolidation after dropping for most of the previous week.
Weekly U.S. wheat export inspections of 400,000 tonnes showed a considerable improvement from the previous week, with total shipments to-date running 12 per cent ahead of last year’s pace.
