By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Oct. 30 (CNS Canada) – ICE Futures Canada canola contracts were lower on Monday, seeing a modest profit-taking correction to start the week.
Speculators booking profits after last week’s run up to two month highs accounted for some of the day’s selling pressure.
Losses in Chicago Board of Trade soyoil and a steady tone in the Canadian dollar contributed to the declines, according to participants.
Recent gains in soyoil and weakness in the Canadian currency had underpinned the canola market. With those two markets moving in opposite directions on Monday, canola had room to move lower.
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Harvest operations are wrapped up across most of the Prairies, but persistent delays in parts of Alberta provided some support as some acres may end up overwintering.
About 24,924 canola contracts traded on Monday, which compares with Friday when 26,542 contracts changed hands. Spreading accounted for 17,316 of the contracts traded.
Soybean futures at the Chicago Board of Trade posted small losses on Monday, as an early attempt at moving higher ran into resistance.
The US soybean harvest is moving along and is expected to be about 80 per cent complete in the USDA’s weekly report out Monday afternoon.
Improving weather forecasts out of South America put some pressure on prices, as farmers in Brazil and Argentina move forward seeding their next crop.
However, rain expected in some eastern parts of the U.S. Midwest later this week could cause delays, providing some underlying support.
For corn, prices were within half a cent of unchanged lacking any clear direction on Monday. The U.S. corn harvest is thought to be about half done, which is a bit behind normal for this time of year, but still an improvement over last week.
Speculators were already holding large net short positions to start the day, and the threat of short-covering kept corn hovering in its sideways range.
Wheat was mixed, with gains in Minneapolis, and losses in the Chicago and Kansas City contracts.
Ample world wheat supplies continue to overhang the U.S. futures, with tighter stocks of higher protein wheat keeping the Minneapolis futures relatively supported.
U.S. winter wheat seedings are estimated to be about 85 per cent complete, with moisture conditions looking good for germination in the southern Plains.
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