WINNIPEG–The ICE Futures canola market settled with solid gains on Thursday after moving to both sides of unchanged in choppy activity throughout the session.
Weakness in the Canadian dollar, which was down by roughly three-quarters of a cent relative to its United States counterpart, accounted for some of the strength in canola. Uncertainty over new crop production also underpinned the market.
Farmers in the western Prairies are making seeding progress, but fields in the region remain on the dry side after last year’s drought. Meanwhile, heavy precipitation and cool temperatures in the eastern Prairies this spring will likely delay planting. The first crop report of the season from Saskatchewan showed that only one per cent of intended acres were in the ground, which compares with nine per cent at the same time a year ago.
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Statistics Canada releases its stocks as of March 31 report on Friday, which will provide a clearer picture on usage-to-date and available supplies heading into the new crop year.
About 15,153 canola contracts traded on Thursday, which compares with Wednesday when 16,891 contracts changed hands. Spreading accounted for 6,840 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, as solid export demand provided some support. The gains came despite a downturn in soyoil, as the product spreads saw some readjustment.
Weekly United States soybean export sales included 734,000 tonnes of old crop business and an additional 407,000 for the new crop year. The sales were at the higher end of expectations.
Losses in Malaysian palm oil did put some spillover pressure on the market, as activity there resumed after holidays earlier in the week.
CORN traded to both sides of unchanged throughout the session, settling with small gains as a rally in wheat provided support.
Weekly U.S. corn export sales of about 1.5 million tonnes were evenly split between the old and new crop.
The slow start to U.S. corn planting remained somewhat supportive, with mounting dryness concerns for the second corn crop in Brazil also underpinning the futures.
WHEAT saw a continuation of Wednesday’s rally, with the biggest gains in Kansas City hard red winter wheat.
Ideas that India may curb wheat exports were supportive, after hot weather cut into production there.
Persistent dryness concerns for U.S. winter wheat in the Southern Plains and the slow start to seeding for spring wheat to the north contributed to the firmer tone in the futures.
Ongoing concerns over the conflict in Ukraine continued to overhang the wheat market as well.
