By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 18 (CNS Canada) – ICE Futures Canada canola contracts were narrowly mixed at Friday’s close, retreating from earlier gains with losses in the nearby July contract and strength in the new crop months.
Positioning ahead of the long weekend was a feature, as Canadian markets will be closed for Victoria Day on Monday while markets remain open in the United States.
Ideas that trade tensions between the U.S. and China were easing somewhat gave the grains and oilseeds in Chicago a boost, as China announced it was dropping an anti-dumping probe into U.S. sorghum. While some of that buying interest spilled over to support canola, the reduced likelihood of Chinese soybean demand shifting to Canadian canola was also somewhat bearish.
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Parts of Western Canada were receiving much needed rain on Friday, putting some pressure on canola. However, more moisture will be needed in many locations.
About 14,400 canola contracts traded, which compares with Thursday when 13,356 contracts changed hands. Spreading accounted for 4,884 of the contracts traded.
SOYBEANS were higher in the most active months, as renewed optimism on trade relations between the United States and China provided support.
Concerns over seeding delays in parts of the Midwest due to excess moisture were also supportive.
However, the U.S. Department of Agriculture announced cancellations of nearly a million tonnes of previously reported soy business this morning, which put some pressure on values.
U.S. lawmakers failed to pass the country’s latest farm bill on Friday, as its passage became tied up in a dispute between Republican factions over immigration reform.
CORN futures were stronger, with China’s move to back down on sorghum tariffs the major supportive influence. A rally in wheat also provided some spillover support.
Concerns over seeding delays in some parts of the Midwest also underpinned the futures, with chart-based buying another supportive influence as the nearby July contract moved back above the psychological four dollar mark.
WHEAT futures were higher across the board, with Kansas City hard red winter wheat leading to the upside as the latest forecasts look dry for much of the southern U.S. Plains.
A number of other major wheat growing regions of the world are also dealing with dryness, including Australia.
Spring wheat seeding is reportedly moving forward at a brisk pace in the northern U.S., with about 80 to 90 percent of the crop likely in the ground by this weekend.
