WINNIPEG – The ICE Futures canola market had a significant drop to start the week as the holiday season approaches.
Chicago soyoil and Malaysian palm oil were higher, while European rapeseed was lower. Crude oil was trending in positive territory, affected by higher interest rates in central banks and the easing of COVID-19 restrictions in China.
At mid-afternoon, the Canadian dollar gained two-tenths of a United States cent from Friday’s close.
About 28,988 canola contracts were traded on Monday, which compares with Friday when 23,361 contracts changed hands. Spreading accounted for 16,978 of the contracts traded. Settlement prices are in Canadian dollars per metric tonne.
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For the fourth time in five sessions, the March CORN contract declined.
More than 743,000 tonnes of United States corn were exported during the week ended Dec. 15, according to the U.S. Department of Agriculture, up 226,000 tonnes from last week but still 259,000 tonnes under the same week last year.
The central U.S. will be hit with a deep freeze this week, as well as a major storm for the upper Midwest on Thursday, increasing the need for livestock feed.
Drought-stricken parts of Argentina and Brazil both received rains over the weekend. Argentina is expected to receive more rain late this week, but the precipitation won’t be enough to reverse ongoing dry conditions.
SOYBEAN prices took a hit on Monday partly due to demand concerns from China and a potentially large Brazilian crop.
The USDA’s weekly export inspections report showed 1.62 million tonnes of soybeans were shipped during the week ended Dec. 15, down from 1.878 million last week and from 1.91 million during the same week last year.
Wet forecasts in Argentina, where drought has affected the country’s soybean crop, are also putting pressure on prices.
WHEAT prices ended Monday on a low note despite weather concerns in the U.S.
Freezing temperatures in the U.S. are likely to threaten already drought-affected winter wheat crops, many of which are lacking snow cover.
Weekly inspections data showed 304,000 tonnes of U.S. wheat were exported during the week that ended Dec. 15, 85,000 tonnes higher than the previous week and up 70,000 from the same week last year.
China reported that 1.01 million tonnes of wheat were imported in November, 35 per cent higher than November 2021.
