North American Grain/Oilseed Review: Canola recovers to end higher

The ICE Futures canola market was stronger at Monday’s close, recovering from early losses.

Weakness in Chicago Board of Trade soybeans and soyoil had weighed on the canola market for most of the session, with European rapeseed futures also down on the day.

However, the speculative profit-taking that weighed early on canola dried up as the day progressed, and canola managed to turn higher.

Tight supplies, bullish technical signals, gains in Malaysian palm oil and solid demand all contributed to the eventual strength in canola.

About 17,602 canola contracts traded on Monday, which compares with Friday when 20,752 contracts changed hands. Spreading accounted for 12,292 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, as investors adjusted positions ahead of the United States Department of Agriculture’s monthly supply/demand report.

Traders generally expect to see upward revisions to both U.S. soybean production and ending stocks estimates in Tuesday’s report.

Seasonal harvest pressure in the U.S. contributed to the declines, while seeding in South America is reportedly running ahead of normal. Forecasts out of Brazil call for increased soybean production this year.

Weekly U.S. soybean export inspections were up slightly from the previous week, at just over 2.6 million tonnes, but slightly behind what moved the same time a year ago.

CORN was weaker, taking some direction from soybeans.

Weekly US corn export inspections at just over 500,000 tonnes were down on the week and year, but the USDA also announced a private export sale this morning of 150,000 tonnes of corn to Colombia.

U.S. corn yields are expected to be revised higher in tomorrow’s report, but world stocks of the grain may tighten.

WHEAT was mostly higher, with early weakness uncovering some buying interest amid ideas the losses were looking overdone.

Tight supplies of higher quality wheat internationally remained supportive, with cool and wet forecasts out of Australia also underpinning the futures ahead of the harvest there.

The Western Producer

Tags: soyoil, canola market, futures, corn, export, soybeans, wheat