North American Grain/Oilseed Review: Canola down again

The ICE Futures canola market was weaker on Monday, seeing some follow-through selling after last week’s declines with some stops likely hit on the way down as prices dipped below some major moving averages.

Renewed COVID-19 concerns in China weighed heavily on crude oil in early trade, with that selling pressure spilling into the canola market as well. Early losses in crude oil and European rapeseed futures contributed to the weakness in the Canadian oilseed.

However, crude recovered most of its losses while soyoil was higher by the close, helping canola move off its lows as well.

Weakness in the Canadian dollar provided some underlying support for canola, with wide crush margins likely keeping some solid end user demand underneath the market.

About 42,784 canola contracts traded on Monday, which compares with Friday when 37,251 contracts changed hands. Spreading accounted for 23,108 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, recovering from earlier losses. Soybeans had been pressured lower to start the day by the selloff in crude oil, but with oil off its lows the soy complex also managed to recover.

Markets in the United States will be closed Thursday for Thanksgiving and only open for a shortened session on Friday, with positioning ahead of the holiday behind some of the activity.

Weekly inspection data showed that 2.3 million tonnes of U.S. soybeans left the country in the latest reporting period. That was up 19 per cent from the previous week, but still slightly off what moved during the same week a year ago. China was the major destination.

Persistent dryness in Argentina, where farmers are seeding their next soybean crop, contributed to the gains in beans. However, conditions are thought to be relatively favourable in Brazil, keeping a lid on the upside.

CORN was lower, with strength in the U.S. dollar behind some of the weakness as the rising currency makes exports less attractive to global buyers.

Weekly U.S. corn export inspections came in at just under half a million tonnes, which was down slightly from the previous week and well off what moved during the same week a year ago.

WHEAT was steady to lower in thin and choppy activity.

Weekly U.S. wheat exports of 280,000 tonnes were up on both the week and year, providing some support.

Rosario Grain Exchange in Argentina lowered their expectations for wheat exports from the country this year, citing the drought concerns and frost damage cutting into production.

Tags: soybean, wheat, soyoil, rapeseed, futures, Market, corn, canola, prices