By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 6 (MarketsFarm) – The ICE Futures canola market held onto small gains on Monday, but settled well off its session highs after running into chart resistance.
Gains in Chicago Board of Trade soyoil and advances in the outside equity markets contributed to the firmer tone in canola, according to participants.
However, activity was largely speculative in nature, with uncertainty over the COVID-19 pandemic remaining at the forefront of the markets.
Fundamental issues were largely kept to the sidelines, although a broker noted that attention may soon turn to Prairie weather conditions as farmers resume harvesting the last of the 2019 crop and set their sights on seeding the 2020 crop.
About 15,457 canola contracts traded on Monday, which compares with Friday when 13,771 contracts changed hands. Spreading accounted for 11,682 of the contracts traded.
SOYBEANS at the Chicago Board of Trade were stronger Monday, as gains in soyoil provided some support.
A firmer tone in the equities for some of the spillover strength in beans, with the Dow Jones Industrial Average up by a thousand points late in the day.
However, reports of improving logistics out of Argentina put some pressure on soymeal, which tempered the upside in beans.
The advancing Brazilian harvest, which was reportedly 86 per cent compete, also kept the gains in check.
CORN futures posted small losses, with declines in cattle futures behind some of the spillover selling pressure amid expectations for reduced demand from the livestock sector.
Weakness in crude oil and ethanol also weighed on corn .
However, solid export demand recently provided some underlying support.
WHEAT futures were higher, seeing a corrective bounce to start the week after recent losses.
Cold temperatures across parts of the U.S. Plains over the weekend were supportive, given the possibility of frost damage to recently emerged winter wheat crops.
Solid international demand, as end users look to shore up wheat supplies amid the COVID-19 pandemic, also provided support.
Futures Prices as of April 6, 2020
Prices are in Canadian dollars per metric ton