By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Dec. 12 (MarketsFarm) – The ICE Futures canola market was mixed on Monday. The nearby January contract managed to hold onto a small gain, while the more deferred months were all lower.
Malaysian palm oil, European rapeseed and Chicago soybean futures were all weaker on the day, accounting for some spillover selling pressure in the Canadian oilseed. However, soyoil was higher, which tempered the losses in canola to some extent.
Chart-based positioning accounted for some of the activity, as participants adjust themselves ahead of the holidays.
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About 36,939 canola contracts traded on Monday, which compares with Friday when 41,336 contracts changed hands. Spreading accounted for 27,222 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were lower on Monday, as sharp losses in soymeal weighed on values.
Much-needed rains in Argentina over the weekend sparked the selloff in soymeal that spilled into soybeans, as the country is a major meal exporter.
However, soyoil was up on the day, with adjustments to the product spreads and support from gains in crude oil providing some support.
Weekly United States soybean exports of 1.8 million tonnes were down slightly from the previous week. Total soybean exports to date of 23.4 million tonnes are running behind the year-ago pace by about two million tonnes.
CORN held onto gains, despite the losses in soybeans, as a rally in wheat provided spillover support.
Weekly U.S. corn export inspections of about 500,000 tonnes were down on both the week and year, with total export movement during the marketing year to date of 7.1 million tonnes running well off the year ago pace that had already seen 10 million tonnes move by now.
Gains in crude oil were supportive for the ethanol-linked grain.
WHEAT was higher across the board, seeing some positioning to start the week after recent declines.
Weekly U.S. wheat export inspections came in at about 218,000 tonnes. That was down on both the week and year, although total wheat exports to date of 11.1 million tonnes were only slightly behind the year ago pace.
Forecasts call for precipitation across some dry areas of the U.S. Plains over the next week.
