ICE canola futures flop on vegoil weakness
All figures in Canadian dollars unless noted
WINNIPEG, Dec 16 (Reuters) -Most ICE canola futures contracts fell more than 2% on Monday, closing within a whisker of session lows, as weakness in soyoil hit confidence in canola's relative strength.
• Most-traded March canola RSH5 fell $13.90 to $610.10 per metric ton, almost $25 lower than Dec. 12's near-term intraday peak of $635. Nov. 8 saw a peak above $678 after a five-week rally. In May the contract momentarily rose to $711 per ton.
• January canola RSF5 settled down $11.40 at $601.10 per ton. All contracts from March to November fell $13.40-$14.00.
• Traders said the weakness in soyoil and other vegoil markets was the main cause of canola's Monday losses. But canola's inability to stay strong despite extremely tight stocks suggests the bull case was now baked-in.
• "The shine from the bullish surprise in canola production from Statistics Canada on December 5 has also worked itself through the market and it is likely that those fundamentals are now fully priced in," said independent market analyst Brian Comeault. "March canola futures are now trading below $620 for the first time since Dec. 6."
• Chicago Board of Trade soyoil futures BOv1 fell more than 2%, with the session ending near the daily lows despite lower-than-expected stocks in a monthly National Oilseed Processors Association (NOPA) report.
• Soybean futures dragged soyoil lower as NOPA data showed the U.S. crush fell in November from the prior month's record and was lower than most trade expectations at 193.2 million bushels, versus a Reuters survey average of 196.7. SOY/C
• Euronext February rapeseed futures COMG5 fell 0.96% during the Monday session and Malaysian palm oil futures FCPOc3 fell 1.2%, with weakness in soyoil attributed for much of the loss. POI/
• The Canadian dollar CAD= and Canadian government bond yields were keenly watched after the shock resignation of Chrystia Freeland, the country's finance minister, Monday morning. Freeland has been clashing with Prime Minister Justin Trudeau over her unwillingness to support costly new financial measures, such as a temporary national sales tax holiday on some items, which she described in her resignation letter as "costly political gimmicks." CAD/
Reporting by Ed White; Editing by Alan Barona
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