By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 5 (MarketsFarm) – The ICE Futures canola market was stronger on Monday, with the largest gains in the old crop months as speculators returned to the buy side after the long weekend.
Gains in Chicago Board of Trade soyoil and soybeans contributed to the firmer tone in canola. Concerns over tightening old crop canola supplies, as both exports and the domestic crush continue to run at a solid pace, were also supportive.
Dry weather conditions across much of the Canadian Prairies ahead of spring seeding were another supportive influence.
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However, the new crop contracts lagged to the upside, with the market anticipating increased seeded area. Strength in the Canadian dollar, which neared 80 U.S. cents, also put some pressure on values.
About 14,943 canola contracts traded on Monday, which compares with Thursday when 32,761 contracts changed hands. Spreading accounted for 8,756 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, finding support from chart-based speculative buying after the long weekend and the previous week’s choppy trade.
Solid export demand and tightening old crop supplies provided some support. with the need to encourage acres this spring also underpinning the futures.
Last week’s acreage estimates from the United States Department of Agriculture remained bullish, especially as early indications point to corn taking some area away from beans.
On the other side, rising production estimates out of South America put some pressure on values.
The first weekly USDA crop report of the season will be released after the close, showing the planting pace to date.
CORN futures were mixed, with losses in the front months and gains in the more deferred positions.
The acreage battle with soybeans kept the new crop months supported, but relatively favourable seeding weather did pressure on prices.
A lack of fresh export demand also weighed on prices.
WHEAT futures were mixed on the day, with losses in Kansas City hard red winter wheat and gains in the other markets.
The USDA reported private export sales of 130,000 tonnes of soft red winter wheat to unknown destinations this morning, which was especially supportive for the Chicago soft wheat contracts.
Mounting drought concerns in North Dakota underpinned the spring wheat market, with ideas that soybeans and corn may take some area away from wheat in the northern states also supportive.
