By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 14 (CNS Canada) – ICE Futures Canada canola contracts settled near unchanged in the most active months on Monday, retreating from earlier gains as the market ran into technical resistance.
Gains in Chicago Board of Trade soybeans provided support for most of the session, but soyoil futures were softer on the day.
Forecasts calling for much needed rain in parts of Western Canada put some pressure on values, although traders were also showing some caution as they wait to see if the precipitation actually materializes.
Read Also
Canadian Financial Close: More declines for loonie
By Glen Hallick Glacier Farm Media | MarketsFarm – The Canadian dollar fell back further on Wednesday, as the Bank…
Large old crop supplies and expectations for record large acres this year weighed on prices, according to participants.
About 11,856 canola contracts traded, which compares with Friday when 9,407 contracts changed hands. Spreading accounted for 3,088 of the contracts traded.
SOYBEAN futures were up sharply on Monday. Easing tensions between the United States and China accounted for some of the gains in beans, as the latest tweets from President Donald Trump over the weekend hinted that a deal was being negotiated.
Chart-based buying added to the strength in soybeans, as overnight losses uncovered support and investors returned to the buy side.
Weekly U.S. soybean export inspections of nearly 700,000 tonnes came in at the high end of trade guesses, providing additional support.
CORN futures held near unchanged, as support from the advances in soybeans was countered by the bearish influence of the declining wheat futures.
Ideas that U.S. farmers made good seeding progress over the past week put some pressure on values, with about two-thirds of the crop likely in the ground as of this past Sunday.
WHEAT futures were lower, as improving weather conditions weighed on values. While some U.S. wheat growing regions remain on the dry side, others received some welcome moisture over the weekend and there is more rain in the forecasts over the next week.
Poor export demand and bearish chart signals also weighed on wheat, with a move below technical support levels triggering additional selling pressure.
The U.S. spring wheat crop is thought to be at least 50 per cent seeded by now, as farmers make up for a late start.
