By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, April 27 (CNS Canada) – ICE Futures Canada canola contracts were mixed on Thursday, as farmer selling weighed on the front months and weather concerns gave the new crop contracts a boost.
Persistent weather concerns in Western Canada helped prop up the new crop contracts, as the cool and wet conditions will likely lead to seeding delays. In addition, up to two million acres of land is still sitting with unharvested crops from last fall that will need to be dealt with.
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On the other side, recent strength in the futures and the resulting gains in the cash market triggered farmer sales of old crop canola, which weighed on the front months. Losses in Chicago Board of Trade soyoil also weighed on prices.
About 17,677 canola contracts traded on Thursday, which compares with Wednesday when 24,223 contracts changed hands. Spreading accounted for 7,582 of the contracts traded, with the tightening of the old/new crop spread a feature.
Milling wheat, durum, and barley were all untraded, although wheat prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade were narrowly mixed on Thursday, settling within a penny of unchanged in the most active contracts.
Solid weekly US soybean export sales of 808,000 tonnes came in well above trade guesses, and provided some underlying support.
However, the large South American crops and expectations that seeding delays in the US could see more area shift out of corn and into soybeans, weighed on prices and kept soybeans rangebound overall.
US President Donald Trump made a turnaround on the North American Free Trade Agreement (NAFTA), announcing that he will be looking to renegotiate the trade deal with Canada and Mexico, rather than exit it completely as had been expected on Wednesday.
SOYOIL futures were lower on Thursday.
SOYMEAL futures were firmer on Thursday, with adjustments to the soyoil/soymeal spread providing some support.
CORN futures in Chicago were up by two to three cents per bushel on Thursday.
Weekly US corn export sales reported by the USDA beat expectations, coming in at just under a million tonnes.
Persistent seeding delays in parts of the Midwest were also supportive, according to traders, although the longer term forecasts are turning drier.
WHEAT futures in Chicago were up by four to six cents per bushel on Thursday, as weather concerns provided support.
Forecasts calling for freezing temperatures in some US winter wheat growing regions may lead to crop damage, which brought in some of the day’s buying interest.
Poor seeding conditions for the country’s spring wheat crops in the northern states added to the firmer tone.
However, poor export demand did pressure values, with weekly US wheat export sales coming in well below trade expectations at only 62,000 tonnes
