By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, April 28 (CNS Canada) – ICE Futures Canada canola contracts settled mixed on Friday, with losses in the nearby months and a firmer tone in the more deferred positions.
Speculative selling accounted for much of the weakness in the front months, as the spread between the old and new crop months narrowed in considerably.
Losses in Chicago Board of Trade soyoil put some spillover pressure on canola as well. In addition, relatively favourable canola cash prices available over the past week reportedly brought in more farmer sales.
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…
However, persistent cool and wet conditions in Western Canada were supportive, with up to two million acres of unharvested grain and oilseeds still waiting to be cleaned up from 2016. The poor weather has traders concerned about seeding delays and a reduction in acres from the record intentions.
Weakness in the Canadian dollar was also supportive for canola.
About 22,101 canola contracts traded on Friday, which compares with Thursday when 27,677 contracts changed hands. Spreading accounted for 7,234 of the contracts traded.
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 steady to down one cent per bushel on Friday.
Good harvest reports out of Argentina, where about a third of the soybean crop is now off, accounted for some of the weakness, according to participants.
Expectations that US soybean area will likely end up above the current official forecast also weighed on prices, as traders continue to try and get a handle on weather conditions and their impact on acres.
Forecasts remain wet for the US Midwest this weekend, but the longer range outlooks are turning drier.
SOYOIL futures were lower on Friday.
SOYMEAL futures were firmer on Friday, with adjustments to the soyoil/soymeal spread providing some support.
CORN futures in Chicago were down by one to four cents per bushel on Friday.
Improving long range weather forecasts should allow US farmers make better progress seeding this year’s corn crop, which may allow most fields to be planted before the mid-May traditional cut off.
Large old crop supplies also weighed on prices, with very heavy deliveries against the nearby May contract before its expiry underscoring the big supply picture.
WHEAT futures in Chicago were up by one to five cents per bushel on Friday, as weather concerns provided support.
Temperatures dropped below freezing in many US winter wheat growing regions overnight, and more cold is expected over the weekend. The frost at this time of year will cause damage and lead to production losses for winter wheat
Crop conditions in Europe were also reportedly declining. France’s wheat crop fell to 78 per cent good to excellent, from 85 per cent, according to a report from FranceAgriMer.
However, poor export demand continued to limit the upside for US wheat.
