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North American grain/oilseed review: Canola uptrend continues Monday

| 2 min read

By Phil Franz-Warkentin

 

Glacier FarmMedia MarketsFarm — The ICE Futures canola market was stronger on Monday, hitting fresh two-month highs as speculative short-covering provided support.

The November contract settled just below its 200-day moving average.

Chicago soyoil, European rapeseed and Malaysian palm oil futures were all higher on the day, providing spillover support. However, losses in soybeans tempered the upside.

Relatively favourable Prairie weather conditions across Western Canada should allow farmers to make some good progress bringing in the last of the canola harvest over the next week.

There were an estimated 46,462 contracts traded on Monday, which compares with Friday when 87,710 contracts traded. Spreading accounted for 26,646 of the contracts traded.

 

SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, as good harvest weather and improving moisture conditions in Brazil weighed on values.

The United States Department of Agriculture releases its monthly supply/demand estimates on Friday, and positioning ahead of the data was a feature of the activity.

While a lack of moisture has delayed soybean seeding in Brazil, the longer-range outlooks call for more precipitation.

Flash sales of 172,500 tonnes of U.S. soybeans to unknown destinations were reported by the USDA.

 

CORN was underpinned by news that a Ukrainian grain vessel carrying corn was hit by a Russian missile attack. That marked the second ship carrying Ukrainian grain targeted by Russia over the past week.

Speculative short covering contributed to the gains in corn, although seasonal harvest pressure limited the advances.

Forecasts call for warm and dry conditions across most of the Midwest over the next week.

The USDA announced private export sales of 155,000 tonnes of corn to Mexico this morning.

 

WHEAT was also boosted by the Russian attacks on Ukrainian grain vessels.

Poor weather cutting into Russia’s crop prospects contributed to the gains, although ideas that the country will still be a sizeable player in the global export market limited that support.