By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 16 (MarketsFarm) – The ICE Futures canola market was stronger on Monday, seeing a continuation of Friday’s gains as a rally in wheat pulled most other agricultural commodities up as well.
News over the weekend that India would limit wheat exports provided the catalyst for the strength in wheat. Chicago Board of Trade soybeans and European rapeseed futures were both stronger, although soyoil retreated from its own earlier gains to turn lower.
Tight old crop supplies and uncertainty over new crop production remained supportive for canola. Seeding remains behind normal in the eastern Canadian Prairies, with more rain in the forecast over the next week.
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WHEAT futures in the United States posted limit-up gains on Monday, gapping higher in all three markets on news India would limit wheat exports.
Excessive heat and dryness hurt wheat production in India, which has caused the country to announce plans to limit wheat exports to secure domestic supplies. While there had been some talk over the weekend about an outright ban, India is expected to follow-through with previously booked business.
Spring wheat seeding in the northern U.S. and eastern Canadian Prairies continues to run well behind normal, providing additional support. Less than half of the intended acres are thought to be in the ground in the U.S., which compares with the normal for this time of year of at least two-thirds complete.
Dryness for winter wheat in the southern U.S. Plains also provided support.
SOYBEANS found spillover support from the rally in wheat.
Solid export demand contributed to the gains, with weekly U.S. soybean inspections of just under 800,000 tonnes up from both the week and year ago.
However, monthly crush data failed to live up to expectations, putting some pressure on values.
U.S. soybean crushers processed 169.8 million bushels of soybeans in April, according to a report from the National Oilseed Processors Association. That was down by 12 million from the previous month and below pre-report expectations.
CORN was also underpinned by the gains in wheat.
U.S. corn seeding is nearing the halfway mark. However, the progress is still well behind average with the slow pace possibly leading to some acres shifting out of corn and into soybeans.
Weekly U.S. corn export inspections, at just over a million tonnes, were down from the previous week with total movement to date running about 17 per cent behind the year ago pace.
