By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 4 (CNS Canada) – ICE Futures Canada canola contracts settled mixed on Friday, with losses in the front months and gains in the more deferred positions as the old/new crop spreads narrowed in ahead of the weekend.
Good seeding weather across the Prairies and spillover selling from a downturn in Chicago Board of Trade soybeans weighed on prices in early activity. A move below the 50-day moving average in the July contract was also bearish, as it triggered some fund long liquidation, according to a broker.
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However, a lack of significant farmer selling on the other side provided some underlying support.
Canola also never followed soybeans higher on Thursday, and had little reason to follow lower when beans retreated on Friday.
About 16,596 canola contracts traded, which compares with Thursday when 15,204 contracts changed hands. Spreading accounted for 7,420 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved lower on Friday, seeing a correction following Thursday’s late gains as rumours that a resolution to the trade dispute between China and the United States had been reached, proved short lived.
Negotiations between the two countries this week failed to show much headway. China also announced emergency measures to increase its own soybean plantings and make up for lost imports.
However, the ongoing concerns over Argentina’s crop remained supportive, with heavy rains in parts of the country now causing harvest delays after drought during the growing season cut into yields.
CORN futures ended slightly lower, taking some direction from soybeans and wheat.
Rains were expected to cause some seeding delays across parts of the Midwest, although the moisture will be beneficial for crop development in the long run.
South American weather was being followed closely by corn traders, with rains in Argentina also delaying the corn harvest and Brazil’s second corn crop dealing with dryness.
WHEAT futures corrected lower on Friday, as traders booked profits after recent gains. However, the underlying fundamentals that gave wheat a boost earlier in the week remained supportive.
A crop tour of Kansas wrapped up with a forecast predicting the smallest wheat production in the state in nearly 30 years. Average yields were estimated at 37 bushels per acre, which compares with last year’s 46 and the five-year average of 41 bushels per acre.
