By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, April 25 (CNS Canada) – ICE Futures Canada canola contracts were mixed on Tuesday, with losses in the front months and gains in the new crop contracts.
Traders made adjustments to the intermonth spreads, as front months had shot up to sizeable premiums relative to the new crop in recent sessions.
Losses in Chicago Board of Trade soybeans and soyoil put some pressure on canola, according to participants. Speculative profit-taking also weighed on values amid ideas that the old crop contracts were overdone to the upside.
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However, concerns over tightening supplies remained supportive, especially as wet and cool conditions across much of Western Canada continue to raise concerns over spring seeding delays.
Weakness in the Canadian dollar, which was down by roughly half a cent relative to its US counterpart, was also supportive for canola.
About 37,768 canola contracts traded on Tuesday, which compares with Monday when 29,408 contracts changed hands. Spreading accounted for 22,678 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were down by five to six cents per bushel on Tuesday, as US soybean seedings are running ahead of normal.
The US soybean crop was six per cent seeded as of this past Sunday, according to the latest USDA report, which compares with the five-year average of three per cent.
Production estimates out of South America also continue to rise, which added to the softer tone in beans.
Spreading against corn was another feature, with investors reportedly selling beans and buying corn amid ideas that seeding delays in parts of the Midwest would see more area shift away from corn and into soybeans.
SOYOIL futures were lower on Tuesday.
SOYMEAL futures were weaker on Tuesday.
CORN futures in Chicago were up by four to six cents per bushel on Tuesday, as persistent weather concerns provided support.
The US corn crop was 17 per cent seeded as of this past Sunday, which is well off the last year’s pace of 28 per cent seeded, but only slightly behind the five-year average of 18 per cent. Forecasts are calling for more rain and cold weather across much of the Corn Belt, which will likely cause further delays.
However, the large South American crops and ample US old crop corn supplies provided some underlying support.
WHEAT futures in Chicago were down by six to eight cents per bushel on Tuesday, with a rally in the Minneapolis spring wheat market pulling the other markets up as well.
US spring wheat was 22 per seeded as of this past Sunday, which is off the average for this time of year of about 34 per cent, as cool wet conditions cause delays.
General weakness in the US dollar index was also supportive for wheat, as the softer currency should encourage additional export demand.
However, relatively favourable condition ratings for the US winter wheat crop tempered the gains, with 54 per cent of the crop in the good-to-excellent category.
