By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was sharply lower on Monday, as losses in outside markets and bearish technical signals weighed on prices.
Values dropped below several major moving averages to settle at their lowest levels in the past month, as speculative selling built on itself. Forecasts calling for welcome precipitation across dry areas of Western Canada over the next week contributed to the weaker tone.
The Chicago soy complex, European rapeseed and Malaysian palm oil were all lower on the day.
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Glacier FarmMedia — The ICE Futures canola market was weaker on Friday, taking back Thursday’s gains as losses in Chicago…
However, recent weakness in the Canadian dollar, which has lost roughly a cent relative to its United States counterpart over the past week remained somewhat supportive.
There were an estimated 70,724 contracts traded on Monday, which compares with Friday when 74,823 contracts traded. Spreading accounted for 49,380 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Monday. While forecasts calling for wet weather in the southern United States may delay some spring seeding, the moisture will be beneficial for crops in the long run.
Uncertainty in the global energy markets, as participants watch for any developments on the situation between Israel and Iran, kept some caution in the agricultural futures.
Increasing export competition from Brazil accounted for some of the weakness in soybeans, with the soybean harvest there over 80 per cent complete, according to reports.
Weekly U.S. soybean export inspections of about 433,000 tonnes were down from the previous week, with China accounting for about half of the total.
Monthly U.S. crush data from the National Oilseed Processors Association showed a record 196.4 million bushels of soybeans were crushed in the country in March. However, that was still slightly below average trade estimates.
CORN was also weakened on Monday. Weekly U.S. corn export inspections of 1.3 million tonnes were down by about 100,000 tonnes from the previous week, although year-to-date exports are still running well ahead of the year-ago pace.
The U.S. Department of Agriculture announced flash export sales of 165,000 tonnes of corn to Mexico this morning, with most for delivery during the current marketing year.
WHEAT was lower, with recent strength in the U.S. dollar behind some of the selling pressure.
Weekly U.S. wheat export inspections were up on the week, coming in at about 550,000 tonnes.
