By Dave Sims, Commodity News Service Canada
Winnipeg, November 6 (CNS Canada) – The ICE Futures Canada canola market finished higher amid thin volumes on Monday, as advances in U.S. soyoil provided the path of least resistance.
Demand for canola continues to be steady while gains in U.S. soybeans also helped prop up values.
Traders were positioning themselves ahead of Thursday’s USDA supply and demand report.
Dryness problems in northern Brazil underpinned prices.
However, losses in Malaysian palm oil were bearish for the market.
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The recent rally in canola looks like it may be running out of steam, according to a trader in Winnipeg.
The Canadian dollar was slightly higher, which dragged on canola prices.
Around 9,384 canola contracts were traded on Monday, which compares with Friday when around 14,566 contracts changed hands. Spreading accounted for 4,996 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
The soybean market finished seven cents stronger Monday on ideas the USDA will likely lower its soybean yield estimates in this week’s supply and demand report.
Planting delays in Brazil added to the upside.
However, China has indicated it is planning to import five million tonnes of soybeans from Brazil.
Corn ended roughly half a cent lower on Monday in directionless trade.
The market continues to chop around the US$3.50 per bushel mark.
The weekly export inspections for corn came in at 444,648 metric tons, which was slightly lower than expected.
Wheat futures were three to five cents higher in speculative trade.
Iraq purchased half a million tonnes of wheat from the U.S. prompting speculation of looming demand for U.S. supplies.
Weekly export inspections came in at 285,000 tonnes, which was at the low end of expectations.
