By Phil Franz-Warkentin and Terryn Shiells, Commodity News Service Canada
May 11, 2015
Winnipeg – ICE Futures Canada canola contracts were narrowly mixed on Monday, lacking any clear direction as participants squared positions ahead of Tuesday’s monthly USDA report.
A firmer tone in CBOT soyoil and a weaker Canadian dollar earlier in the day were both somewhat supportive for canola, according to participants.
A lack of significant farmer selling, as producers remain busy with spring seeding, helped underpin the market as well. However, buying interest on the other side is also lacking for the time being, keeping prices range bound overall.
Read Also
Canadian Financial Close: Loonie, crude oil advance
The Canadian dollar reached its highest close in nine days on Wednesday, aided by higher crude oil prices. The loonie…
Freezing temperatures in parts of Alberta and Saskatchewan over the weekend were cited as a supportive influence as well, with some early seeded canola fields possibly needing to be replanted.
About 16,659 canola contracts were traded on Monday, which compares with Friday when 10,697 contracts changed hands. Spreading accounted for 5,214 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
CBOT soybean futures ended two to three cents US per bushel softer on Monday, as traders liquidated positions ahead of Tuesday’s monthly supply and demand report from the USDA.
The report will include the USDA’s first production estimates for the 2015/16 world and US crops, which could show a near record large soybean crop.
Expectations that the USDA’s weekly crop report, to be released late Monday, will show very good planting progress was made last week were also bearish.
Though, ongoing worries that fast corn planting in the US Midwest will lead to fewer soybean acres limited the downside, as did signs of steady demand for the US oilseed.
SOYOIL futures finished stronger, with strength in outside vegetable oil markets behind the gains, according to traders.
SOYMEAL futures were lower, undermined by spreading against soyoil.
CORN futures in Chicago finished two to three cents US per bushel softer Monday, reacting to expectations that the USDA’s weekly crop report will show good seeding progress was made last week.
The arrival of rainfall in many parts of the US Midwest over the weekend was also bearish, as it benefited early seeded corn crops.
Though, steady export demand and improving ethanol margins helped to limit the losses.
WHEAT futures in the US closed steady to fractionally weaker. Positioning ahead of the USDA’s monthly supply and demand report on Tuesday was a feature of the activity. Kansas City, Chicago Board of Trade and Minneapolis futures ranged from steady to four cents US per bushel weaker.
Much of the softness was linked to forecasts calling for beneficial rainfall in the southern US Plains this week, analysts said.
Beneficial rain is also in the forecast for recently planted spring wheat crops in the northern Plains, which was bearish. Though, some traders argue that the moisture will increase the risk of disease.
• Algeria bought 200,000 tonnes of durum for delivery in May and June from Mexico and Canada. Prices ranged from $310 to $322 per tonne, reports say.
• The US government is expected to donate 100,000 tonnes of wheat to Jordan in an effort to reduce the economic impact of having refugees from Syria in their country.
• US exporters inspected 378,407 metric tons of wheat during the week ended May 7, according to the USDA’s weekly report. The week prior, wheat export inspections totalled 325,930 tons.
Settlement prices are in Canadian dollars per metric ton.
