By Dave Sims, Commodity News Service Canada
Winnipeg, January 22 (CNS Canada) – The ICE Futures Canada canola complex finished with modest losses on the week’s opening session.
The market underwent a slight correction downward in the wake of last week’s move higher.
Recent strength in the Canadian dollar was bearish for values.
“The spreads are pushing long canola, short soy,” said a trader in Winnipeg. “At some point they’ll reverse that but it’s hard to tell when.”
However, advances in the U.S. soy complex underpinned the market.
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Some commercials were out looking for bargains.
He adds there are ideas Statistics Canada may have over-estimated the size of the canola crop in its most recent report.
Around 14,611 canola contracts were traded on Monday, which compares with Friday when around 16,710 contracts changed hands. Spreading accounted for 9,696 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended Monday five to seven cents higher as traders covered shorts.
Weather forecasts indicate Argentina will not see much rain in the week ahead, which was supportive.
Speculators have increased their short position by roughly 14,000 contracts to around 135,000.
The corn market was mostly unchanged in technical trade.
U.S. export inspections were pegged at around 669,000 tonnes, which was below analysts’ estimates of 800,000 to 1,000,000 tonnes.
Hot weather in Argentina is reportedly affecting the grain-filling stage.
Chicago wheat posted gains of three to four cents to start the week.
Short-covering helped support the wheat market along with some technical action.
There continue to be concerns about excess dryness in parts of the U.S. Plains, however some snow did fall over the weekend in parts of Nebraska, Kansas and Colorado, which was bearish.
