By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Nov. 5 (CNS Canada) – ICE Futures canola contracts fell to their lowest levels in 14 months on Monday, as bearish technical signals and seasonal harvest pressure weighed on prices.
Speculators were liquidating long positions and adding to their net shorts, as the market remained bearish from a chart standpoint.
With the harvest wrapped up in many locations, producers made good deliveries in recent weeks and the commercial pipeline is full of canola for the time being.
However, the losses were bringing in some scale-down exporter and domestic crusher demand, as canola prices look more favourable to end users.
About 11,484 canola contracts traded, which compares with Friday when 22,470 contracts changed hands. Spreading accounted for 4,098 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, as soft export demand and seasonal harvest pressure weighed on values.
Weekly U.S. soybean exports of 1.229 million tonnes were down from the previous week, and well off what moved during the same week a year ago, according to the latest U.S. Department of Agriculture data.
The advancing U.S. soybean harvest and good seeding reports out of South America also weighed on prices.
The ongoing trade dispute with China kept some caution in the bean market, as there have been no concrete moves towards a resolution despite optimistic rhetoric from both sides.
CORN futures moved higher, despite the losses in soybeans.
Harvest delaying rains in parts of the Midwest over the weekend provided some support, although harvest operations should be nearing completion in many areas.
The USDA reported a flash sale of just over 100,000 tonnes of corn to Mexico this morning.
Weekly U.S. corn exports of 1.25 million tonnes were up from both the week ago and year ago levels.
WHEAT futures were narrowly mixed, with losses in Chicago soft white wheat and a firmer tone in Minneapolis spring wheat and Kansas City hard red winter wheat.
U.S. winter wheat seedings should be nearing completion after a week of good weather. However, it’s getting late in the season, and some intended acres may end up unseeded this year due to earlier delays.
The USDA releases its latest progress report after the close, which could provide some direction to the wheat market tomorrow.
Weekly U.S. wheat exports of about 325,000 tonnes were down from the previous week, but still above what moved during the same week in 2017.
Commodity Future Prices
updated 2018-11-04 17:00
Prices are in Canadian dollars per metric ton