North American Grain/Oilseed Review: Canola nears contract highs

The ICE Futures canola market was stronger on Monday, boosted by spillover from gains in Chicago Board of Trade soyoil and Malaysian palm oil.

Bullish chart signals contributed to the gains, as prices neared major upside resistance.

Tight supplies remained another supportive influence, although demand is already being rationed at current price levels, according to participants. Recent strength in the Canadian dollar also weighed on values.

About 25,547 canola contracts traded on Monday, which compares with Friday when 31,715 contracts changed hands. Spreading accounted for 21,796 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, finding support from gains in world vegetable and crude oil markets.

Chart-based buying added to the upward trend, with some stops likely hit on the way up.

Weekly United States soybean export inspections were down slightly on the week, but still solid at 2.1 million tonnes.
Seasonal harvest pressure tempered the advances somewhat, although weekend rains were likely causing delays in parts of the Midwest.

Meanwhile, farmers in Brazil are reportedly making good progress seeding their next crop, with over a third of intended acres in the ground already, according to reports.

While gains in crude oil were also supportive for CORN, the grain ran into resistance and held steady on the day.

Weekly US corn export inspections were cut in half compared to the previous week, at just over 500,000 tonnes.

The good U.S. harvest pace was also bearish, although gains in wheat provided some spillover support.

WHEAT was stronger across the board, with the largest gains in Minneapolis spring wheat amid concerns over tight supplies of higher quality milling wheat.

Increased Russian wheat taxes are reportedly cutting into export movement from the country, which was also supportive for the U.S. futures.

The Western Producer

Tags: US, wheat, soyoil, palm oil, futures, corn, canola, soybean