By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 17 (MarketsFarm) – The ICE Futures canola market was stronger on Monday, as spillover from outside markets and chart-based positioning provided support.
Chicago soyoil, European rapeseed and Malaysian palm oil futures were all higher on the day, contributing to the bullish tone in canola.
Speculative fund traders covering short positions ahead of the expiry of the front month was also behind some of the activity, with managed money still sitting on a net short of nearly 50,000 contracts in canola as of April 11.
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About 31,460 canola contracts traded on Monday, which compares with Friday when 35,038 contracts changed hands. Spreading accounted for 23,710 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, posting double-digit gains in most contracts.
Monthly United States soybean crush data beat expectations with 185.8 million bushels processed in March, according to the National Oilseed Processors Association. That was a new record for the month and two million bushels above average pre-report guesses. Soyoil stocks were still tighter than expected, despite the increased crush.
Chart-based positioning and ongoing concerns over production out of Argentina contributed to the gains.
CORN was underpinned by shifting weather forecasts and solid export movement.
U.S. farmers likely made some good seeding progress over the past week. However, cold temperatures over the weekend and forecasts calling for snow in some areas this week were supportive, as the weather will likely cause some seeding delays.
The U.S. Department of Agriculture reported weekly U.S. corn shipments of 1.2 million tonnes which was well ahead of what moved the previous week.
WHEAT posted solid gains as rains in parts of Kansas over the weekend likely weren’t enough to improve condition ratings for the drought-stricken U.S. winter wheat crop.
Poland, Hungary, and Slovakia announced over the weekend that they were banning the import of Ukrainian grain, in an attempt to protect their own domestic markets.
