By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, April 17 (CNS Canada) – ICE Futures Canada canola contracts were narrowly mixed at Tuesday’s close, as support from gains in Chicago Board of Trade soybeans was countered by the bearish influence of the firmer Canadian dollar.
Supportive technical signals contributed early gains, as recent losses were starting to look a bit overdone. The possibility of increased export demand from China also underpinned the futures.
Persistent winter weather in parts of Alberta and Saskatchewan raised some concerns over late seeding. However, there’s plenty of time for the ground to warm up, and most analysts are still predicting record canola seedings this spring.
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About 31,345 canola contracts traded on Tuesday, which compares with Monday when 16,225 contracts changed hands. Spreading was a feature, accounting for 20,098 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted small gains on Tuesday, as the market saw a corrective bounce following Monday’s losses. Gains in soymeal and solid demand from the domestic crush sector contributed to the firmer tone in beans.
However, expectations for increased soybean acres in the United States this spring tempered the upside. Concerns over trade with China were also back at the forefront of the grain and oilseed markets.
CORN futures were down slightly on the day, but still holding rangebound overall.
The U.S. corn crop was three per cent seeded as of this past Sunday, which is off the average pace of six per cent for this time of year. More delays are expected, as much of the Midwest deals with adverse weather.
China announced it would impose 179 per cent temporary deposits on sorghum imports from the U.S. The move in advance of more permanent tariffs was the latest in the mounting trade dispute between the two countries, and follows an anti-dumping investigation into claims that U.S. sorghum was being unfairly subsidized.
WHEAT futures were mostly higher, seeing some stability after recent losses.
The U.S. spring wheat crop was only three per cent seeded as of this past Sunday, according to the USDA, which was well off the 15 per cent average for this time of year.
However, ample world supplies remained a bearish influence in the background. Forecasts calling for improving moisture conditions in the dry southern Plains also weighed on winter wheat values.
