By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market climbed to its highest levels in four months on Monday, as speculative short covering built on itself, and prices moved above several key chart points.
Gains in outside markets added to the firmer tone in the Canadian oilseed, with Chicago soyoil, European rapeseed and Malaysian palm oil futures all higher on the day.
Rains in the forecast for Western Canada may cause some seeding delays but will be beneficial for crops in the long run, bringing much needed moisture to dry regions of the Prairies.
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Statistics Canada releases its stocks as of March 31 report on Tuesday. The numbers should provide a clearer picture of usage to date, with average trade expectations calling for stocks of at least a million tonnes above the seven million tonnes on hand at the same time a year ago.
There were an estimated 76,598 contracts traded on Monday, which compares with Friday when 42,942 contracts traded. Spreading accounted for 27,338 of the contracts traded. SOYBEAN futures at the Chicago Board of Trade were up sharply on Monday, hitting their highest levels in three months as speculative short covering and global weather concerns provided support.
SOYBEAN futures at the Chicago Board of Trade were up sharply on Monday, hitting their highest levels in three months as speculative short covering and global weather concerns provided support.
Heavy flooding in southern Brazil has halted the last of the soybean harvest and likely cut into the country’s overall production.
Meanwhile, rains in the midwestern United States will likely cause some seeding delays, although the moisture should benefit crops in the long run.
Weekly U.S. soybean export inspections of about 350,000 tonnes were up on the week, but down from what moved the same week the previous year with year-to-date U.S. soybean exports of 39.1 million tonnes running about 18 per cent off the year ago pace.
CORN was higher, as the grain was also supported by speculative short covering and the heavy Brazilian rains damaging corn crops in the country.
Weekly U.S. corn export inspections came in at 1.28 million tonnes, with year-to-date exports of just under 33 million tonnes up by 32 per cent on the year.
WHEAT was higher across the board, with weather uncertainty in Russia behind some of the strength.
Frost was reported in some Russian wheat growing regions over the weekend, while a lack of moisture also continues to cut into yield prospects in the country.
The U.S. Department of Agriculture will release its monthly supply/demand estimates on Friday, with positioning ahead of the data behind some of the activity.
