By Dave Sims, Commodity News Service Canada
Winnipeg, March 5 (CNS Canada) – The ICE Futures Canada canola ended higher on Monday, taking support from a falling Canadian currency. The Canadian dollar was barely hanging above the 77 US cent mark, which makes canola more enticing to foreign buyers.
Gains in U.S. soybeans were supportive for the market.
Snowfall across the Prairies over the weekend may be delaying farmer sales.
Despite Canola’s recent rise it is still relatively affordable compared to other oilseeds.
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Glacier FarmMedia | MarketsFarm – The Canadian dollar eased off on Monday, but remained above the 73 United States cent mark….
However, losses in U.S. soyoil weighed on the market.
Expectations of a large Canadian canola crop this year tempered the upside.
A recent rally in soymeal appears to have fizzled out while recent talk about tariffs in the U.S. has thrown some hesitation into the market.
Around 19,169 canola contracts were traded on Monday, which compares with Friday when around 18,726 contracts changed hands. Spreading accounted for 9,624 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished higher on Monday in speculative trade.
The market received a boost after Informa economics lowered its estimate for the Argentine soybean crop to 44 million tonnes. That compares to the previous estimate of 51 million.
The Brazilian harvest is over a third complete.
Large funds continue to build up long positions in both soybeans and soymeal.
Corn futures ticked slightly higher with reasonable demand.
Informa Economics lowered its estimate for the corn crop in Argentina to 33.5 million tonnes. That is 3.5 million tonnes lower than the previous estimate.
Despite its recent rise, corn is still the cheapest U.S. grain right now. That means sales are fairly steady.
Chicago wheat futures posted solid gains on the day due to dryness concerns in the U.S. Plains.
The northern U.S. received snow last night, which should help alleviate some of the dryness problems in that region.
Large equity funds may be hesitant to enter the market right now with all the talk of a trade war.
