Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was mixed at Monday’s close, with losses in the most active nearby contracts and a firmer tone in the more deferred positions.
Overbought price sentiment contributed to the eventual downturn in the old crop July contract, with losses in outside markets also weighing on values. Chicago soyoil, European rapeseed and Malaysian palm oil were all weaker.
July canola touched a high of C$714 per tonne earlier in the day — marking the strongest level for the nearby canola contract in 18 months. However, the contract backed away to settle just above psychological resistance at C$700.
Read Also
ICE Midday: Canola rises to end downturn
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange rebounded from recent losses in the middle of Wednesday…
Tightening old crop supplies and the need to ration demand remained supportive. Statistics Canada is set to release updated stocks data as of March 31 on Thursday.
There were 42,837 contracts traded on Monday, which compares with Friday when 41,831 contracts changed hands. Spreading accounted for 26,068 of the contracts traded.
SOYBEAN and CORN futures at the Chicago Board of Trade were weaker on Monday, as favourable weather conditions across the Midwestern United States should allow for good seeding progress.
While it’s still very early in the season, there’s no need for a weather premium in either crop for the time being. Updated planting progress data is set for release late Monday afternoon.
Pre-report estimates peg corn planting at about 40 per cent complete and soybeans at 30 per cent.
Uncertainty over trade talks between the U.S. and China was overhanging the futures, with traders cautious over how much stock to take in the latest comments from either country.
Traders were also expressing concern over proposed cuts to Environmental Protection Agency funding which would lead to reduced demand for feedstocks to produce renewable fuel.
WHEAT was also down on the day, as a lack of any major weather concerns and soft export demand weighed on prices.
Weekly U.S. wheat export inspections of 310,326 tonnes were down 42 per cent from the previous week. However, year-to-date wheat exports of about 19.8 million tonnes were running 14 per cent ahead of the year-ago pace.
