Strength in the Chicago soybean complex once again helped to lift canola futures to gains in trading on Monday.
The soy complex continued to be underpinned by heavy rain and extreme flooding in the southern Brazil state of Rio Grande do Sul, where an estimated one-quarter of the soybean crop remains unharvested. Estimates today are putting the state’s likely production losses between 1 million and 3 million tonnes. Export demand sent soymeal futures sharply higher today, while soyoil closed with advances as well.
Meanwhile, weather on the Prairies over the next few days may be good for drought relief but bad for seeding progress. Rainfall of 1 to 3 inches and local totals to nearly 4 inches are expected in eastern and southern Alberta and far southwestern Saskatchewan in the coming days. “Soil moisture is already favourable in the eastern Prairies and now the west will finally get some meaningful drought relief,” World Weather said.
July canola gained $13.90 to $660.90, November was up $14.60 to $675.40, and January was $13.40 higher at $681.80.
