By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 18 (MarketsFarm) – The ICE Futures canola market was mixed on Tuesday, with continued strength in the nearby July contract and a softer tone in the new crop months.
The July contract hit its daily limit in early activity, leading to thin trade in the deferred months for the remainder of the session.
July canola had moved up its C$45 per tonne daily limit in early activity, but selling pressure eventually came forward to take values off of their highs.
Meanwhile, forecasts calling for much needed rains in parts of Western Canada over the next week was bearish for the deferred positions. Strength in the Canadian dollar and a mixed tone in the Chicago Board of Trade soy complex also weighed on values.
About 18,312 canola contracts traded on Tuesday, which compares with Monday when 14,029 contracts changed hands. Spreading accounted for 4,694 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were mixed on Tuesday, with losses in the nearby contracts and gains in the more deferred months.
Soybeans in the United States were 61 per cent seeded as of this past Sunday, according to the weekly U.S. Department of Agriculture report. That was well ahead of the 37 per cent average for this time of year.
Tight old crop supplies and good export demand remained supportive, but forecasts calling for good growing weather across the U.S. Midwest over the next week put some pressure on values. Chart-based speculative positioning also weighed on prices.
CORN was higher, as solid export demand provided support.
The USDA announced private exports of 1.36 million tonnes of new crop corn to China this morning, marking the second million-tonne-plus sale to the country in a row.
The U.S. corn crop was 80 per cent seeded in the latest weekly report. That was 12 points ahead of average, but still slightly behind trade guesses.
Warmer Midwestern weather should aid crop development, with some beneficial moisture also in the forecasts.
WHEAT futures were mostly lower, after trading to both sides of unchanged earlier in the day.
The U.S. winter wheat crop was rated 48 per cent good to excellent in the latest weekly report, which was down one point from the previous week.
Spring wheat was 85 per cent seeded in the U.S. That was ahead of average, with some beneficial rain in the forecasts for the dry spring wheat growing regions as well.