By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 1 (CNS Canada) – ICE Futures Canada canola contracts settled mostly lower on Tuesday, as weakness in Chicago Board of Trade soyoil weighed on prices.
While gains in CBOT soybeans and a weaker tone in the Canadian dollar provided support earlier in the day, canola was eventually pressured lower by the new contract lows posted in CBOT soyoil. Ideas that canola was looking expensive compared to other oilseeds also weighed on values.
However, steady end-user demand and a lack of significant farmer selling pressure provided some underlying support.
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Golden week holidays in Japan limited some activity from that major canola buyer. Many international markets were also closed Tuesday for May Day.
About 10,154 canola contracts traded on Tuesday, which compares with Monday when 9,599 contracts changed hands. Spreading accounted for 5,132 of the contracts traded.
SOYBEAN futures were pulled higher by a rally in soymeal on Tuesday, as the declining soybean production estimates out of Argentina continue to raise concerns over tightening world supplies of the animal feed.
Logistics issues in the South American country added to the firmer tone in beans, as the market is still unsure how long repairs will take at a major port after a cargo vessel collided with a dock in Rosario last week.
The U.S. soybean crop was five per cent seeded as of this past Sunday, which was in line with the five-year-average for this time of year.
CORN futures were higher on Tuesday, taking some direction from wheat.
The U.S. corn crop was 17 per cent seeded in the latest weekly USDA report, which was up considerably on the week, but still behind the five-year average of 27 per cent done.
Forecasts are calling for rain across much of the Midwest later this week, and the possibility of more delays kept corn well supported.
WHEAT futures were all higher, with the largest gains in Chicago soft wheat.
The U.S. winter wheat crop was rated 33 per cent good to excellent in the latest weekly report, which was up two points on the week.
However, crop development was well behind normal, and drought stress remains a concern in many areas.
Spring wheat was only 10 per cent seeded across the country, which was well off the 36 per cent average for this time of year.
