By Phil Franz-Warkentin, MarketsFarm
Winnipeg, May 17 (MarketsFarm) – ICE Futures canola contracts settled lower on Friday, taking some direction from Chicago Board of Trade soybeans and soyoil.
After largely ignoring sharp losses in the soy complex for most of the session, heavy selling came forward in canola in the final 15 minutes.
Large old crop supplies and uncertainty over trade relations with China kept some caution in the market, according to participants.
A lack of significant farmer selling, as producers keep busy with spring seeding, provided some underlying support.
The canola market will be closed Monday for Victoria Day, while United States markets will trade their usual hours. Positioning ahead of the long weekend was a feature.
About 16,823 canola contracts traded on Friday, which compares with Thursday when 17,137 contracts changed hands. Spreading accounted for 7,878 of the contracts trade.
SOYBEAN futures at the Chicago Board of Trade dropped sharply lower on Friday, seeing a correction after posting gains the previous three sessions.
The slow pace of spring seeding across the United States Midwest has traders expecting some intended corn acres will switch to soybeans, as beans can go in the ground later.
The continued lack of progress on trade talks with China also weighed on values. Poor export demand, rising South American production estimates and ample old crop stocks all added to the bearish tone in beans.
However, gains in corn provided some support.
CORN was up as spring seeding is running well behind normal and forecasts calling for heavy rain across the Midwest will cause further delays.
With crop insurance deadlines looming, some acres will likely go unseeded or switch to soybeans instead.
The wet conditions are also less than ideal for those fields that were seeded, and yields could be hurt depending on what happens over the growing season.
WHEAT futures were mixed, with gains in the Kansas City and Minneapolis contracts, and losses in Chicago soft wheat.
The rains causing seeding delays for corn are also starting to lead to disease concerns for wheat in some areas, with the chance of harvest delays also supportive
Spring wheat seeding in the northern states also remains behind normal.