By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 27 (MarketsFarm) – The ICE Futures canola market traded to both sides of unchanged on Monday, with the bias higher at the close as participants adjusted positions ahead of the month-end.
Speculative positioning accounted for much of the activity, as the canola market held above major chart support. A lack of significant farmer selling added to the firmer tone.
However, losses in the Chicago Board of Trade soy complex put some pressure on values. Strength in the Canadian dollar and losses in crude oil also weighed on prices.
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About 28,404 canola contracts traded on Monday, which compares with Friday when 14,513 contracts changed hands. Spreading accounted for 24,622 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade traded to both sides of unchanged on Monday, with the bias to the downside in the most active months.
Expectations that China may be in the market for more soybeans from the United States, after news came out last week that the country was looking to increase its domestic stockpiles, provided some support.
However, large South American crops may displace any U.S. business. Declines in energy markets also weighed on prices.
CORN futures were weaker, settling right above their recently-hit contract lows, as ongoing weakness in crude oil and ethanol weighed on values.
Crude oil was down by about US$4 per barrel late in the day, with West Texas Intermediate trading at about US$12.50 per barrel.
The U.S. corn crop was estimated at anywhere from 18 to 30 per cent seeded.
Dryness in Brazil raised some concerns over the second corn crop there, providing some support.
WHEAT futures were weaker, with forecasts calling for improved moisture conditions in Europe behind some of the selling pressure.
Dry weather had raised concerns over the developing wheat crops in Europe and the Black Sea region in recent weeks, but the latest forecasts are now calling for some much needed precipitation.
However, solid demand provided some underlying support with Saudi Arabia making a large 655,000 tonne purchase in an international tender.
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