MARKET DEVELOPMENT
Veg Oil Helps Lift Canola, Corn Down on Drier US Harvest Weather
Veg Oil Helps Lift Canola, Corn Down on Drier US Harvest Weather
20/09/2016 (Western Producer) - Canola futures edged higher on Monday, supported by soybean oil and palm oil as well an uncertain Prairie harvesting weather.
Rain in amounts of a half-inch to more than an inch is expected over much of the southern Prairies on Friday-Saturday. The heaviest accumulations are expected in south central Saskatchewan close to the U.S. border.
Statistics Canada will report on Tuesday estimates for yield and production of major Canadian crops, based on satellite and other data.
Better, drier harvest weather in much of the U.S. Midwest weighed on corn prices on Monday, while soybeans rose for a third straight session.
Chicago wheat gained modestly, held in check by corn’s slide and an ongoing disruption in Egyptian wheat imports.
Drier weather in southern and eastern areas of the U.S. Midwest should help crops dry this week and allow for early harvesting, according to MDA Weather Services. Rainy weather last week sparked a rally in corn and soy.
“It looks to me like we have five days of sunshine for all but the northern parts of the corn belt,” said Roy Huckabay, executive vice-president of The Linn Group brokerage.
Corn sagged early last week following monthly USDA crop forecasts that confirmed the prospect of a huge harvest, before recovering at the end of the week.
“There’s a lot of people in the trade saying (corn) could go down a whole lot more. That’s part of the reason people seem so willing to jump on the sell-corn bandwagon,” Illinois-based farmer consultant Matt Bennett said.
Spillover strength from Malaysian palm oil, a rival oilseed that rose on Monday on expectations of tight stocks, lifted soybeans, Huckabay said.
The U.S. Department of Agriculture on Monday reported export inspections of 755,120 tonnes of soybeans, less than the one million to 1.3 million tonnes expected.
Weekly crop progress data to be released by the U.S. Department of Agriculture after the market close will give an indication of rain disruption to harvesting.
The ratings will likely show no change in weekly condition ratings for corn and soybeans, according to a Reuters poll.
Egypt failed to attract a single offer at its state grain tender on Monday, forcing it to cancel its third consecutive wheat purchase tender during an ongoing standoff with suppliers over import policies.
Light crude oil nearby futures in New York were up 27 cents to US$43.30 per barrel.
The Canadian dollar at noon was US75.87 cents, up from 75.68 cents the previous trading day. The U.S. dollar at noon was C$1.3181.
It appears the weight of opinion in the market is that the U.S. Federal Reserve will leave interest rates unchanged at its meeting this week.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 45.54 points, or 0.32 percent, at 14,496.23.
The Dow Jones industrial average fell 3.77 points, or 0.02 percent, to 18,120.03, the S&P 500 lost 0.02 points, or -0 percent, to 2,139.14 and the Nasdaq Composite dropped 9.54 points, or 0.18 percent, to 5,235.03.
Rain in amounts of a half-inch to more than an inch is expected over much of the southern Prairies on Friday-Saturday. The heaviest accumulations are expected in south central Saskatchewan close to the U.S. border.
Statistics Canada will report on Tuesday estimates for yield and production of major Canadian crops, based on satellite and other data.
Better, drier harvest weather in much of the U.S. Midwest weighed on corn prices on Monday, while soybeans rose for a third straight session.
Chicago wheat gained modestly, held in check by corn’s slide and an ongoing disruption in Egyptian wheat imports.
Drier weather in southern and eastern areas of the U.S. Midwest should help crops dry this week and allow for early harvesting, according to MDA Weather Services. Rainy weather last week sparked a rally in corn and soy.
“It looks to me like we have five days of sunshine for all but the northern parts of the corn belt,” said Roy Huckabay, executive vice-president of The Linn Group brokerage.
Corn sagged early last week following monthly USDA crop forecasts that confirmed the prospect of a huge harvest, before recovering at the end of the week.
“There’s a lot of people in the trade saying (corn) could go down a whole lot more. That’s part of the reason people seem so willing to jump on the sell-corn bandwagon,” Illinois-based farmer consultant Matt Bennett said.
Spillover strength from Malaysian palm oil, a rival oilseed that rose on Monday on expectations of tight stocks, lifted soybeans, Huckabay said.
The U.S. Department of Agriculture on Monday reported export inspections of 755,120 tonnes of soybeans, less than the one million to 1.3 million tonnes expected.
Weekly crop progress data to be released by the U.S. Department of Agriculture after the market close will give an indication of rain disruption to harvesting.
The ratings will likely show no change in weekly condition ratings for corn and soybeans, according to a Reuters poll.
Egypt failed to attract a single offer at its state grain tender on Monday, forcing it to cancel its third consecutive wheat purchase tender during an ongoing standoff with suppliers over import policies.
Light crude oil nearby futures in New York were up 27 cents to US$43.30 per barrel.
The Canadian dollar at noon was US75.87 cents, up from 75.68 cents the previous trading day. The U.S. dollar at noon was C$1.3181.
It appears the weight of opinion in the market is that the U.S. Federal Reserve will leave interest rates unchanged at its meeting this week.
The Toronto Stock Exchange’s S&P/TSX composite index closed up 45.54 points, or 0.32 percent, at 14,496.23.
The Dow Jones industrial average fell 3.77 points, or 0.02 percent, to 18,120.03, the S&P 500 lost 0.02 points, or -0 percent, to 2,139.14 and the Nasdaq Composite dropped 9.54 points, or 0.18 percent, to 5,235.03.