By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 3 (CNS Canada) – ICE Futures Canada canola contracts settled narrowly mixed on Thursday, recovering off of earlier lows as Chicago Board of Trade soybeans rallied late in the session.
Large old crop supplies and improving seeding weather across the Prairies weighed on values, according to participants.
Declines in CBOT soybeans also weighed on prices for most of the day. However, the United States market turned higher in the final half hour.
A lack of significant farmer selling also provided underlying support, as farmers remain busy with spring seeding and other field work.
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About 15,204 canola contracts traded on Thursday, which compares with Wednesday when 18,138 contracts changed hands. Spreading accounted for 9,126 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted losses for most of the day, but moved higher in the final 20 minutes amid speculation that China and the United States may be close to reaching a trade deal.
A U.S. delegation is in China this week, and an announcement on an agreement is rumoured to be set for Friday morning, May 4, Beijing time.
The ongoing trade dispute between the two countries has cut into soybean export sales, with China cancelling some business and not making any new purchases, according to reports.
Weekly U.S. old crop soybean export sales of about 400,000 tonnes were in line with expectations, while new crop business of 470,000 tonnes came in above trade guesses. Weekly meal and oil sales were also solid.
CORN futures were higher, as weekly U.S. corn export sales of just over a million tonnes topped trade guesses.
Concerns that dryness in Brazil was cutting into the yield prospects for its second corn crop were also supportive.
WHEAT futures were higher, with the largest gains in Kansas City hard red winter wheat. A crop tour going on in Kansas this week continues to confirm that potential yields were likely hurt by poor crop conditions in the state. Similar results were being reported out of Oklahoma.
The USDA reported weekly U.S. wheat export sales of about 440,000 tonnes for old and new crop combined, which was at the higher end of trade guesses.
