ICE Canadian canola closed lower on Monday as rain improved prospects for drought-stricken crops in Western Canada and US soybeans fell hard, traders said. July canola dropped $8.70 to settle at $458.10 per tonne on volume of 4,021 contracts. New-crop November also fell $8.70 to move to $454.10, with 5,812 contracts traded.
The July-November spread traded 3,008 times with a premium on the July between $2.90 and $7.50. A soaking rain Sunday has raised hopes of saving the new crop in the Western Canadian province of Saskatchewan, but it largely missed the severely dry areas of neighbouring Alberta. An estimated 900,000 acres will remain unseeded in Manitoba because of excessive moisture.
Statistics Canada releases its updated planting estimates for major crops on Tuesday at 7:30 am CDT (1230 GMT). The trade expects the canola estimate to be 15.5 million acres, which may be high considering some farmers replanted because of frost after the Statscan survey period, one trader said. Crushers were buying to take advantage of the weaker Canadian dollar versus the greenback, but speculators were selling, a trader said.
Chicago Board of Trade July soybeans fell 27-1/2 US cents to settle at US $11.51-1/2 per bushel. At 13:07 CDT (1801 GMT), shortly before canola trading ended, light crude oil was down US $2.77 to US $66.78 per barrel. The Canadian dollar was trading at $1.1518 to $1.1523 against the US currency, or 86.80 US cents, down from Friday's close of $1.1351 to the greenback or 88.10 US cents.