By Phil Franz-Warkentin, Commodity News Service Canada
April 22, 2015
Winnipeg – ICE Futures Canada canola contracts were narrowly mixed at Wednesday’s close, as traders squared positions ahead of Thursday’s Statistics Canada planting intentions report.
Most industry participants are only anticipating small acreage shifts one way or the other for canola, compared to the 20.3 million acres seeded last year.
Given the timing of the survey in late March and the likelihood of further adjustments, the trade will quickly downplay the official acreage number, according to a broker. However, he said the possibility of a surprise was still enough to keep many participants showing some caution today.
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…
Losses in the CBOT soy complex and a firmer tone in the Canadian dollar were both bearish for canola. Meanwhile, solid end user demand and a lack of significant farmer selling remained somewhat supportive.
About 26,004 canola contracts were traded on Wednesday, which compares with Tuesday when 24,240 contracts changed hands. Spreading accounted for 16,718 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
SOYBEAN futures at the Chicago Board of Trade were down by three to five cents per bushel on Wednesday.
Ongoing concerns over a Midwestern bird flu outbreak remained at the forefront of the soybean market, given the expectations for declining demand for soymeal from the poultry sector.
Soft export demand, as international buyers are turning their attention to cheaper South American supplies, also weighed on beans, according to participants.
SOYOIL settled lower on Wednesday.
SOYMEAL futures were down on Wednesday, amid concerns over declining demand from the poultry sector.
CORN futures in Chicago were steady to down one cent per bushel on Wednesday.
The bird flu concerns were also weighing on corn, with favourable US planting weather another bearish influence.
While untimely rains have caused some planting delays across the Midwest this spring, the forecasts are looking warmer and drier over the next two weeks. That should allow US producers to make some good progress seeding this year’s corn crop.
WHEAT futures in Chicago were down by one to two cents per bushel on Tuesday, as prices consolidated within a narrow range. Minneapolis and Kansas City hard wheat futures posted similar losses.
Uncertainty over the state of the US wheat crop remained a feature in that market, with improving moisture forecasts on the one hand being countered by calls for cold temperatures in some regions.
Poor export demand, as US wheat is still facing stiff competition in the global market, also kept wheat under pressure.
However, speculative short covering did provide some underlying support.
Settlement prices are in Canadian dollars per metric ton.
