Home > North American Grains/Oilseeds – Canola Firms With Veg Oil

North American Grains/Oilseeds – Canola Firms With Veg Oil

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THE ice Futures Canada canola market finished higher Monday, taking strength from gains in the vegetable oil market.

The US soy complex was also stronger which supported canola.

Traders may be positioning themselves ahead of a Bank of Canada announcement on Wednesday when interest rates will be discussed.

Commercial demand was relatively steady while crude oil was higher which contributed to the upside.

However, the advancing Brazilian soybean harvest put some pressure on the market. According to a recent report, the Brazilian harvest is 41 per cent complete.

The Canadian dollar was about a quarter of a cent higher relative to its US counterpart, which made canola less attractive to foreign buyers.

There is speculation demand from China could decline in the near future.

Around 11,357 canola contracts were traded on Monday, which compares with Friday when around 23,561 contracts changed hands. Spreading accounted for about 4,442 of the contracts traded.

Milling wheat, barley and durum were untraded and unchanged.

SOYBEAN futures at the Chicago Board of Trade closed two to three cents per bushel stronger on Monday as traders exited bearish bets.

Investors had created a heavy net-short position in the market, analysts say, which is why many chose to change positions at the start of the week.

Rain in parts of the US was also supportive for prices, as it could stall early corn and soybean seeding.

SOYOIL prices settled stronger on Monday, following Malaysian palm oil.

SOYMEAL closed higher on Monday, tracking nearby grain markets.

CORN futures closed about one to two cents per bushel stronger on Monday, as traders shifted positions and crude oil futures gained ground.

Stronger crude oil prices make processing corn into ethanol more appealing, which is bullish.

The potential for rain to hamper early spring seeding in the US further supported prices on Monday.

WHEAT closed one to three cents per bushel stronger on Monday as traders exited bearish bets.

Warm weather in southern parts of the US also supported prices on Monday—as it puts the country’s winter wheat crops at risk of damage.

However, heavy global supplies kept a lid on gains.

– The head of the agriculture ministry’s quarantine office in Egypt has been replaced, market watchers say.

– Wind has flattened some wheat crops in parts of India, according to reports on Monday.

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