By Dave Sims, Commodity News Service Canada
Winnipeg, January 8 (CNS Canada) – Canola contracts on the ICE Futures Canada platform finished weaker on Monday, weighed down by recent strength in the Canadian currency and losses in U.S. soy.
The Canadian dollar continues to hang well above the 80 U.S. cent mark, which made canola less attractive on the international market.
Buying was lukewarm, according to a trader in Winnipeg.
“We’re not attracting a lot of buying interest from speculators,” he said. “It seems these markets are going to be swinging in both directions.”
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Improving weather in Argentina was bearish for prices.
However, global demand for oilseeds remains strong.
Traders went bargain-hunting at the lows shortly before the market closed.
Gains in Malaysian palm oil futures lent support to prices.
Around 16,790 canola contracts were traded on Monday, which compares with Friday when around 20,702 contracts changed hands. Spreading accounted for 8,420 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended two to four cents weaker on Monday in technical trade.
The southern portion of Brazil and Argentina received rain over the weekend and more is expected this week, which should improve growing conditions for soybeans.
Weekly export inspections in the United States came in at 1.18 million tonnes, which was within analysts’ expectations.
Corn futures fell three to four cents lower on Monday, with the March contract falling below its usual perch at US$3.50 a bushel.
Weekly export inspection numbers were near 850,000 tonnes, which was slightly above market expectations.
Mexico bought 102,000 tonnes of corn from the U.S.
Chicago wheat futures finished two to three cents weaker on Monday.
The market is losing some of the weather premium it had as analysts say the impact of cold weather on the U.S. Plains was probably not as bad as feared.
Wheat export inspections came in at 234,000 tonnes, which was at the low end of traders’ expectations.
