By Glen Hallick, MarketsFarm
WINNIPEG, March 14 (MarketsFarm) – ICE Futures canola contracts were mixed at the end of trading on Thursday, with prices up for the front months and steady for the new crop contracts.
Fund players have been heavily short on canola and have seen a good downswing, which they are covering, according to a trader.
Also, there is speculation that China could be quietly buying canola. The trader pointed to similarities with United States soybeans, in which China picked a battle with the U.S., refused to buy soybeans and prices fell. After a period of time, China quietly resumed buying.
However, there is nothing explicit to show this is what China is doing with canola, he said.
Large supplies and a burdensome carryout weighed on values.
The Canadian dollar hovered around 75 U.S. cents by midafternoon Thursday.
About 23,170 contracts were traded on Thursday, which compares with Wednesday when 12,370 contracts changed hands. Spreading accounted for 16,160 contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, as trade negotiations between the United States and China will continue into April.
Chinese President Xi Jinping and U.S. President Donald Trump are now expected to sign a deal by the end of April.
U.S. farmers appear to be ready to plant their third largest soybean crop, according to a report. Farmers said soybeans are their best option in 2019, especially if there is a U.S./China trade deal.
Sales of U.S. soybeans were strong for the week ending March 7. More than 1.9 million tonnes were sold, with 90 per cent of it going to China.
CORN futures were up on Thursday. However, U.S. corn sales were low last week, with about 847,000 tonnes sold to Mexico, South Korea and Japan.
Snow and rain made their way across the U.S. Midwest on Thursday, further delaying spring seeding and raising concerns about flooding.
WHEAT futures were mixed in trading on Thursday, with Kansas wheat steady, while Chicago and Minneapolis wheat up two to six cents.
A round of short covering on May futures provided support.
U.S. wheat sales were poor for the week ending March 7, with about 346,000 tonnes sold, with more than 75 per cent of it old crop, largely hard red wheat.