North American Grain/Oilseed Review: Canola settles mixed after choppy day

The ICE Futures canola market was mixed on Monday, with gains in the nearby January contract and losses in the more deferred months as traders adjusted positions to start the week.

Losses in Chicago soybeans and soyoil put some pressure on the Canadian oilseed, but the soy complex had moved higher on Friday when the canola market was closed for Remembrance Day which kept canola from following lower on Monday.

Wide crush margins, good export demand, and a slightly softer tone in the Canadian dollar also provided support.

Chart resistance held to the upside, tempering the gains and keeping canola in its sideways range.

About 22,933 canola contracts traded on Monday, which compares with Thursday when 27,620 contracts changed hands. Spreading accounted for 15,358 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were weaker on Monday, taking back much of Friday’s gains.

Weekly United States inspections data showed just over 1.8 million tonnes of soybeans were shipped out of the country during the week ended Nov. 10, coming in well below the 2.6 million tonnes moved the previous week.

U.S. President Joe Biden met with China’s Xi Jinping Monday to discuss a range of topics. Grain traders were looking for any sign of increased Chinese demand for U.S. grains and oilseeds, especially soybeans, but nothing new on that front came out of the talks.

CORN traded to both sides of unchanged, with the bias lower at the close as the conflicting influence of rising wheat prices and declining soybean values pulled on the market.

Weekly U.S. corn export inspection of 484,000 tonnes were nearly double what moved the previous week, but well off what was shipped during the same week a year ago.

Recent rains around the Mississippi River have helped improve water levels on the major grain corridor, which should allow barge traffic to pick up going forward.

Timely moisture in Brazil and Argentina was also beneficial for crops there.

WHEAT was higher across the board, with the biggest gains in Minneapolis spring wheat.

Chart-based positioning was a feature in wheat, as the futures saw a continuation of Friday’s bounce.

Mounting quality concerns for Australia’s crop, due to excessive moisture there, were supportive. Meanwhile, only eight per cent of Argentina’s wheat crop was rated good-to-excellent due to dryness there.

However, improving moisture conditions across the U.S. Plains tempered the upside.

Tags: corn, canola, Oilseed, soybeans, wheat, soyoil, futures, Market