By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 10 (MarketsFarm) – The ICE Futures canola market settled lower on Wednesday after posting gains for most of the session.
Speculative positioning and concerns over tight old crop supplies supported canola prices for most of the day, as the market saw some spillover buying interest after Tuesday’s gains.
However, losses in most outside markets eventually pulled canola down as well, with Chicago soyoil, European rapeseed and Malaysian palm oil all weaker.
Seeding was highly varied across the Prairies, although general expectations for a large crop in 2023 were also bearish.
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About 36,117 canola contracts traded on Wednesday, which compares with Tuesday when 26,934 contracts changed hands. Spreading accounted for 16,366 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved lower on Wednesday, pressured by the active planting pace and positioning ahead of Friday’s monthly United States Department of Agriculture supply demand estimates.
The report will include the first official new crop production and stocks estimates, with a wide range of pre-report expectations.
Crude oil inventories in the U.S. came in well above trade forecasts, accounting for some spillover selling in soybeans.
Solid end user demand underneath the market provided some support.
CORN moved higher in the most active months, seeing a continued correction off nearby lows as cheaper prices were making current values a buying opportunity.
Grain inspections at Ukrainian ports resumed Tuesday, two days after being halted.
The active U.S. corn seeding pace, with about half of the crop already in the ground, tempered the advances. Positioning ahead of Friday’s report was also a feature.
WHEAT was mixed, with small gains in Minneapolis spring wheat and losses in the winter wheats.
Poor crop ratings for winter wheat in the southern U.S., and ongoing delays to spring wheat seeding to the north provided support.
Tighter than expected Canadian wheat stocks reported yesterday were also somewhat supportive.
The ongoing conflict in Ukraine remains a feature in the background, with no agreement yet to extend the Black Sea grain corridor deal that is set to expire on May 18.
