By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 6 (CNS Canada) – ICE Futures Canada canola closed mixed on Tuesday.
The front July contract saw slight declines in correction-based trade, after advances in the previous session.
Spread activity was also a feature.
However, deferred contracts were stronger, gathering spillover support from the Chicago Board of Trade soy complex.
The market was also underpinned by dryness concerns for areas in Western Canada, and a tight stocks situation.
Around 19,472 canola contracts traded on Tuesday, which compares with Monday when around 25,658 contracts changed hands. Spreading accounted for 6,712 of the contracts traded.
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Milling wheat, durum and barley futures were all untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up one to four cents per bushel on Tuesday, finding some spillover support from advances in wheat.
The US soybean crop was 83 per cent seeded as of June 4, according to the latest USDA report. That’s slightly ahead of the 79 per cent average for this time of year.
Emergence was pegged at 58 per cent, which was just one point off the five-year average.
Delays seeding corn in some parts of the Midwest may lead to a 500,000 acre increase in soybean seedings, according to some estimates.
SOYOIL futures posted small gains on Tuesday.
SOYMEAL futures were up on Tuesday, following soybeans.
CORN futures in Chicago were up two to four cents per bushel on Tuesday, as gains in the neighbouring wheat market provided spillover support.
The US corn crop was 99 per cent seeded as of this past Sunday, according to the weekly USDA report. Conditions were rated at 68 per cent good-to-excellent, which was a slight improvement from the previous week.
However, some intended corn acres are still expected to be shifting into soybeans instead, due to wet conditions in some parts of the Midwest earlier in the spring.
WHEAT futures in Chicago were up four to seven cents per bushel on Tuesday, as downgrades to the US spring wheat condition ratings provided support.
The US spring wheat crop was rated 55 per cent good-to-excellent in the latest weekly report, which was down seven points from the previous week. Forecasts are calling for continued heat and dryness in the key spring wheat growing regions, which could lead to further downgrades next week.
Winter wheat was rated 49 per cent good-to-excellent, down only one point from the previous week. The winter wheat crop was 10 per cent harvested, which compares with two percent at the same point the previous year.
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