By Phil Franz-Warkentin, MarketsFarm
Winnipeg, May 15 (MarketsFarm) – ICE Futures canola contracts settled with small losses on Wednesday, after a volatile trading session that saw prices bounce around within a wide range.
Speculative short-covering provided support for much of the day, with a lack of significant farmer selling on the other side also underpinning the futures as producers remain focused on spring seeding.
Gains in Chicago Board of Trade soybeans and dryness concerns in parts of Western Canada were also somewhat supportive.
However, the large old crop supplies and ongoing concerns over Chinese demand tempered the upside and canola failed to hold onto its gains.
About 21,128 canola contracts traded on Wednesday, which compares with Tuesday when 26,237 contracts changed hands. Spreading accounted for 10,406 of the contracts trade.
SOYBEAN futures at the Chicago Board of Trade were up on Wednesday, seeing some follow-through speculative short-covering after Tuesday’s bounce off of ten-year lows.
Spring seeding is running well behind normal across much of the Midwest, with more rain in the forecasts over the next two weeks.
While the delays could lead to some intended corn acres switching to beans instead, yields could be hurt by later seeding dates.
Uncertainty over trade talks with China remained a bearish influence in the background, although the latest rhetoric out of the White House was looking more optimistic.
The National Oilseed Processors Association reported that 160 million bushels of soybeans were crushed in the U.S. in April, which came in below trade expectations. Soymeal exports of 763,000 tonnes during the month also failed to live up to expectations, with African swine fever cutting into the demand from China.
CORN futures were stronger, hitting their best levels in seven weeks as the slow Midwest seeding pace provided support.
While there should be a window of opportunity in many areas this week, conditions are forecast to turn wetter again by the weekend.
The latest weekly ethanol report showed production of the renewable fuel in the U.S. at 1.051 million barrels per day, which was up from the previous week. Meanwhile, ethanol stocks tightened to 22.25 million barrels.
WHEAT futures were mixed, with losses in Minneapolis and Kansas City contracts and a firm tone in Chicago soft wheat.