By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 5 (CNS Canada) – ICE Futures Canada canola closed stronger on Monday, as canola moved in correction-based trade after losses in earlier sessions.
Traders shifted to the buy-side with ideas that the market may have become oversold, with the July contract leading the way.
A tight stocks situation was also supportive for the oilseed.
Commercial canola stocks are at the lowest level in three years, which is also bullish.
However, the expectation for a large upcoming crop could limit the upside in coming sessions.
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Around 25,658 canola contracts traded on Monday, which compares with Friday when around 33,518 contracts changed hands. Spreading accounted for 12,352 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were one to three cents per higher bushel on Monday, as speculative short-covering provided some support to start the week.
A report from the USDA that US exporters had sold 120,000 tonnes of beans to ‘unknown destinations,’ contributed to the firmer tone in soybeans.
However, favourable seeding weather over the weekend and ideas that US soybean acreage will end up above earlier forecasts limited the upside.
SOYOIL futures were stronger on Monday, as adjustments to the soyoil/soymeal spread provided support.
SOYMEAL futures were lower on Monday.
CORN futures in Chicago were steady to up one cent per bushel on Monday, after holding narrowly rangebound throughout the session.
Speculative positioning was a feature, as traders awaited the latest crop conditions report due out after the close.
Good weather over the weekend likely allowed farmers to wrap up most of the corn seeding, while condition ratings are generally expected to show an improvement on the week.
WHEAT futures in Chicago were steady to down one cent per bushel on Monday, while the Minneapolis spring wheat market was up by as much as five cents per bushel.
The advancing winter wheat harvest in the southern Plains is showing better-than-expected yields, but quality and protein levels are poor.
The concerns over the protein content in the US winter wheat added support to spring wheat, which was also reacting to the hot and dry weather in the northern states.
