By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, June 12 (CNS Canada) – ICE Futures Canada canola contracts finished mixed on Monday. Concerns over dwindling canola stocks helped lift the July contract while the more deferred values were weighed down by losses in the US soy complex.
Seeding efforts in parts of Alberta and Saskatchewan are still behind schedule, which was supportive.
Advances in Malaysian palm oil were bullish for canola.
However, the Canadian dollar was more than half a cent stronger relative to its US counterpart, which made canola less attractive on the international market.
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Liquidation of long contracts and increased farmer selling undermined canola.
Much of the Prairies received rain recently, which will help crop development, according to a trader in Winnipeg.
“By the end of June we’re going to have a reasonably healthy canola crop,” he said. “The Prairies should be looking reasonably good.”
About 18,777 canola contracts traded on Monday, which compares with Friday when 21,465 contracts changed hands. Spreading accounted for 10,202 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed seven to ten cents per bushel weaker on Monday, as the strong rally the market saw in previous sessions ran dry.
The US Midwest and Plains are expected to see showers this week, which will provide much-needed soil moisture, and is bearish.
Market watchers say China is being stricter when checking its soybean imports for GMOs, which added to the market’s downside.
SOYOIL prices closed lower on Monday.
SOYMEAL closed weaker on Monday.
CORN futures closed six to 11 cents per bushel lower on Monday, feeling spill-over pressure from the soybean market.
Forecasts for rain in key growing areas was also bearish, as it is expected to support crop development.
Reports of increased farmer selling further pressured the market.
WHEAT closed nine to 12 cents per bushel lower on Monday, pressured by the upcoming winter wheat harvest.
Reports of improving crop conditions was also bearish for prices.
