By Dave Sims, Commodity News Service Canada
Winnipeg, November 20 (CNS Canada) – The ICE Futures Canada canola market suffered losses to start the week, as India’s declaration that it would impose tariffs on vegetable oil imports pointed the way lower.
Canola wasn’t the only oilseed affected by the announcement as U.S. soybean, soyoil and Malaysian palm oil futures all ended weaker on the day.
Rain in northern Brazil has improved growing conditions for soybeans, which was bearish.
However, canola futures received some technical support.
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Investors are already beginning to take positions ahead of the U.S. Thanksgiving Day holiday on Thursday.
Around 11,307 canola contracts were traded on Monday, which
compares with Friday when around 18,173 contracts changed hands. Spreading accounted for 4,488 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished roughly half a cent lower on Monday. The market was weighed down by losses in soyoil, which fell due to the news about proposed Indian tariffs on vegetable oil.
Commercial selling added to the downside and some traders took profits in the early going.
Weekly U.S. export inspections finished above two million tonnes for the fifth week in a row.
The corn market ended one to two cents higher as traders covered shorts.
Weekly U.S. export inspections were right in the middle of traders’ expectations. The USDA pegged inspections at 633,000 tonnes, which compares to analysts’ estimates of 500,000 to 750,000 tonnes.
The latest cattle-on-feed report showed that 2.4 million cattle were put on feed in October. That was 10 percent higher than a year ago and strongly suggests beef supplies will grow in 2018.
The wheat market lost four to five cents on Monday.
The market was pressured by profit-taking and weakness in soybeans.
The Australian harvest is also clipping along and early results are better than expected, it should be 20 to 21 million tonnes.
