North American Grain/Oilseed Review: Canola narrowly mixed at closing bell

By Phil Franz-Warkentin, Commodity News Service Canada

Winnipeg, Jan. 7 (CNS Canada) – ICE Futures canola contracts were mixed on Monday, as spillover from gains in Chicago Board of Trade soybeans was countered by the bearish influence of the rising Canadian dollar.

The Canadian dollar has rallied sharply relative to its United States counterpart during the first week of 2019, and was up another half of a cent on Monday to trade above 75 U.S. cents.

The rising currency cut into crush margins and also made exports less attractive to global buyers.

Gains in CBOT soybeans provided some support, but soyoil was lower. Meanwhile, spreading between beans and canola likely saw some traders buying soybeans while selling canola.

About 14,696 canola contracts traded on Monday, which compares with Friday when 11,038 contracts changed hands. Spreading accounted for 8,948 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade posted small gains on Monday. The United States and China are holding trade talks in Beijing this week, and optimism over improving relations between the two countries accounted for some of the buying interest.

China was rumoured to be making more purchases of U.S. soybeans today, but the ongoing partial shutdown of the U.S. government continues to limit the confirmation of any business.

There are ideas that Chinese buyers may be taking advantage of the lack of transparency brought on by the shutdown to buy more soybeans before prices rally.

Weather concerns in parts of Brazil were also supportive for beans.

CORN futures settled with small losses after holding near unchanged for most of the session.

One of the few reports the U.S. Department of Agriculture is still publishing is the weekly export inspections, and the corn data was somewhat disappointing. The 501,000 tonnes shipped during the latest reporting period were well below what moved during the New Year’s holiday week a year ago.

Declining demand from the ethanol sector also put some pressure on corn values.

WHEAT futures were all lower on the day. Weekly U.S. wheat export inspections of 260,000 tonnes were down from the previous week, but still above the year ago level. The exports came in on the lower side of trade estimates, as U.S. wheat continues to face stiff competition in the global market.

Average trade guesses expect U.S. winter wheat seedings this fall were down by about a million acres from the 32.5 million seeded a year ago. However, the USDA’s report that had been set for release on Friday has been delayed due to the shutdown.

Commodity Future Prices

Canola
updated 2019-01-07 11:51
Price Change
Jan481.403.00
Mar485.10-0.30
May493.700.00
Jul501.701.20

Prices are in Canadian dollars per metric ton

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