By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, April 24 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Monday, hitting their highest levels of the past months as concerns over tightening supplies and speculative buying provided support.
Weather issues in Western Canada contributed to the strength. Rain and snowfall in many regions causes harvest delays for the canola still left in the field from last fall and will also lead to seeding delays going forward.
Gains in Chicago Board of Trade soybeans were also supportive.
Read Also
Canadian Financial Close: Loonie jumps, crude oil up
Glacier FarmMedia – The Canadian dollar had its highest closing price in nearly three weeks on Thursday. The loonie closed…
However, losses in CBOT soyoil put some pressure on canola, with crush margins deteriorating slightly on the day. Large South American soybean crops and expectations for record Canadian canola seedings this spring, despite the latest weather concerns, were also overhanging the market
About 29,408 canola contracts traded on Monday, which compares with Friday when 39,467 contracts changed hands. Spreading accounted for 16,734 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were up by seven to 11 cents per bushel on Monday. Speculative short-covering was a feature as beans moved to the top-end of their nearby trading range.
Weekly US soybean export inspections reported by the US Department of Agriculture beat trade guesses, at over 600,000 tonnes, which provided some additional support.
Sharp weakness in the US dollar index was also supportive for soybeans, as the softer currency should encourage offshore demand.
However, large South American supplies and ideas that some intended US corn acres may shift into beans put some pressure on values. Soyoil was also down on the day.
SOYOIL futures were lower on Monday, with spreading against soymeal behind some of the weakness.
SOYMEAL futures were stronger on Monday
CORN futures in Chicago were up by one to two cents per bushel on Monday, with weather concerns in parts of the Midwest providing support.
US corn seedings are running behind the year-ago level, as wet weather continues to cause delays, according to analysts.
Solid weekly export inspections were also supportive, with about 1.5 million tonnes inspected for export.
However, rising South American production estimates kept a lid on the corn market.
WHEAT futures in Chicago were down by one to two cents per bushel on Monday, amid ideas that US winter wheat conditions are showing improvement.
Better weather for wheat crops in Europe also weighed on prices.
However, the gains in soybeans and corn provided some spill-over support, while the weak US dollar could also help export demand going forward.
END
