By Phil Franz-Warkentin, Commodity News Service Canada
May 15, 2015
Winnipeg – ICE Futures Canada canola contracts bounced around both sides of unchanged on Friday, but finished with small losses as declines in CBOT soybeans and soyoil weighed on prices ahead of the long weekend.
Canadian markets will be closed Monday for Victoria Day, while US markets will remain open.
While the losses in soybeans did put some spillover pressure on canola, the Canadian market lagged the US futures to the downside as the underlying fundamentals are much less bearish for canola compared to soybeans, according to participants.
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Concerns over forecasts calling for cold temperatures in parts of Western Canada over the weekend helped underpin canola as well, as frost could cause damage to any early emerging fields.
About 11,273 canola contracts were traded on Friday, which compares with Thursday when 19,633 contracts changed hands. Spreading accounted for 6,612 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade were down by two to four cents per bushel on Friday, as the good spring seeding pace weighed on values.
US processors crushed just over 150 million bushels of soybeans in April, according to a report from the National Oilseed Processors Association. That was a record for the month and also above trade estimates. However, the crush pace was still down from March, as some processors were shutting down for seasonal maintenance.
US soyoil stocks grew slightly in April, which was bearish for prices as well.
SOYOIL settled lower on Friday, as the rising US soyoil supply situation weighed on values. Losses in crude oil and other outside vegetable oil markets also put some pressure on the market.
SOYMEAL futures settled with small gains on Friday, with spreading against soyoil providing some support.
CORN futures in Chicago settled two to four cents per bushel lower on Friday, with as the good pace of spring seeding weighing on prices.
Informa pegged US corn acres at 88.7 million, which would be down slightly from the USDA projection.
WHEAT futures in Chicago were down by three to six cents per bushel on Friday, seeing a modest correction following Thursday’s short-covering bounce.
News that Russia will be lifting its export tax on wheat contributed to the softer tone in wheat, as that move will lead to increased competition for North American wheat on the global stage.
Forecasts calling for heavy rainfall in parts of the US winter wheat belt did remain somewhat supportive, with the threat of cold temperatures another supportive influence.
Settlement prices are in Canadian dollars per metric ton.
