By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, April 26 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Wednesday, as concerns over poor Canadian weather provided support.
More snow in parts of Alberta and Saskatchewan had traders adding to the weather premiums in the market, amid ideas that the cool and wet conditions will delay new crop seedings and limit how much of the old crop left to overwinter will be harvested.
Gains in Chicago Board of Trade soyoil futures and recent weakness in the Canadian dollar added to the firmer tone in canola, according to traders. However, CBOT soybeans were down on the day.
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Reports that US President Donald Trump is considering signing an executive order withdrawing from the North American Free Trade Agreement (NAFTA) weighed on the US grains and oilseeds, and kept some caution in canola as well.
About 24,223 canola contracts traded on Wednesday, which compares with Tuesday when 37,768 contracts changed hands. Spreading accounted for 13,702 of the contracts traded, with the narrowing-in of the old/new crop spread a feature.
Milling wheat, durum, and barley were all untraded.
US President Donald Trump is reportedly close to signing an executive order that would see the country withdraw from the North American Free Trade Agreement (NAFTA). In addition to the resulting issues with Canada such a move would cause, the CBOT grain and oilseeds were down on ideas that Mexican imports of US commodities could drop off considerably, according to market participants.
Persistent cool and wet weather conditions across the Midwest contributed to the weaker tone in soybeans, amid ideas that the resulting seeding delays will see more area shift out of corn and into soybeans.
Large South American soybean crops added to the softer tone.
SOYOIL futures were higher on Wednesday, as adjustments to the soyoil/soymeal spreads provided support.
SOYMEAL futures were weaker on Wednesday, following soybeans.
CORN futures in Chicago were down by four to six cents per bushel, with spillover from the losses in soybeans and the uncertainty over NAFTA weighing on values.
However, corn did find some support from the adverse seeding weather and ideas that planted area may not live up to expectations.
Forecasts calling for possibly damaging cold temperatures in some corn growing regions of Brazil were also supportive.
WHEAT futures in Chicago were steady to down two cents per bushel on Wednesday, as the losses in soybeans and corn put some spillover pressure on the grain.
Ample world supplies, relatively favourable conditions for US winter wheat crops, and bearish technical signals added to the softer tone.
However, the Minneapolis spring wheat market moved higher on the day. With the US spring wheat seeding pace running behind normal, forecasts calling for rain and snow in many of the key US spring wheat growing regions are expected to cause further delays.
Declining crop estimates out of Russia were also somewhat supportive.
