By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 17 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Thursday, seeing a modest recovery after Wednesday’s declines.
Gains in Chicago Board of Trade soyoil provided some spillover support for canola, although soybeans were lower. There were some ideas circulating the market that looming Chinese tariffs on U.S. soybeans were shifting some oilseed demand to Canada, according to a trader.
Dry conditions across much of Western Canada contributed to the firmer tone, despite scattered showers in many areas as more precipitation will be needed, according to participants.
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About 13,356 canola contracts traded, which compares with Wednesday when 14,316 contracts changed hands. Spreading accounted for 6,670 of the contracts traded.
SOYBEANS at the Chicago Board of Trade were lower on Thursday, seeing some follow-through selling after Wednesday’s sharp drop.
Trade negotiations between China and the United States have yet to see any firm resolution, keeping some caution in the market.
The U.S. Department of Agriculture reported a private export sale of 132,000 tonnes of U.S. soybeans to unknown destinations, as the sale was the first extra business in some time.
However, weekly export sales of only half a million tonnes were at the lower end of expectations.
CORN futures were lower, taking some direction from soybeans.
The USDA reported weekly U.S. corn sales just over a million tonnes, which was at the top end of trade estimates.
However, good Midwestern seeding weather put some pressure on values, while reports of beneficial rain for Brazil’s second crop also weighed on prices.
WHEAT futures were all higher, with the biggest gains in Kansas City hard red winter wheat.
Dryness concerns in many major wheat growing regions of the world provided support, with Australia, North America and now even Russia facing some crop stress.
Spring wheat seeding was reportedly moving forward at a brisk pace, with upwards of 90 percent of the crop likely in the ground by this weekend.
Weekly U.S. wheat export sales came in below trade guesses at about 200,000 tonnes, with 143,000 tonnes of previous business also cancelled during the week.
