Glacier FarmMedia — ICE canola futures posted solid gains on Monday, taking back most of Friday’s losses as trade optimism and spillover from a rally in the Chicago soy complex provided support.
Chart-based buying was a feature, as the January contract moved to the upper edge of its sideways trading range.
While there were no fresh developments on trade talks between Canada and China, news that Pakistan had agreed to “facilitate the export” of more Canadian canola to the nation provided additional support to canola.
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ICE canola firm at midday Monday
Glacier FarmMedia — The ICE Futures canola market was higher at midday Monday, taking back some of Friday’s losses in…
Losses in Malaysian palm oil tempered the upside in canola.
There were 49,875 contracts traded on Monday, which compares with Friday when 48,650 contracts changed hands. Spreading accounted for 29,638 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, hitting their highest levels in 16 months as optimism that China would purchase more soybeans from the United States provided support.
China announced last week that it would buy more U.S. soybeans over the next few months, after making their first purchases of new crop beans from the country last week.
However, details of any deal remain lacking, while the ongoing U.S. government shutdown has limited available data.
Weekly export inspections showed just under a million tonnes of soybeans were shipped from the U.S. during the week ended Oct. 30. That was down on both the week and the year.
CORN was up in sympathy with soybeans, with solid exports adding to the firmer tone.
Weekly U.S. corn exports of 1.7 million tonnes were up by 34 per cent from the previous week, with Mexico the largest destination.
WHEAT futures were also higher. In addition to buying U.S. soybeans, China was also reportedly interested in importing more U.S. wheat.
Weekly U.S. wheat export inspections were up by 30 per cent from the previous week, at about 350,000 tonnes.
