By Terryn Shiells, Commodity News Service Canada
WINNIPEG – The ICE Futures Canada canola market ended sharply higher Monday, following along with the rally seen in Chicago soyoil futures, analysts said.
Further support came from the firmer tone seen in Chicago soybean and European rapeseed futures.
The need to keep weather premiums in the market added to the bullish tone, as did continued slow farmer selling as they focus on spring field work.
However, the Canadian currency was stronger, which was bearish, as it made canola more expensive to foreign buyers.
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The large global oilseed supply situation and good conditions for planting in North America so far this spring were also undermining values.
About 11,273 contracts traded on Monday, which compares with Friday when 7,901 contracts changed hands.
Milling wheat, durum and barley futures were all untraded and unchanged.
Chicago soybean futures ended seven to 12 cents US per bushel higher on Monday, with commercial buying and strength in soyoil behind some of the gains, analysts said.
Further support came from ideas that good weather for US corn planting could mean farmers seed less acres to soybeans.
However, signs of slowing demand and generally favourable conditions for North American oilseed seeding were overhanging values.
SOYOIL futures were up sharply, as strong commercial demand underpinned prices, traders said.
SOYMEAL futures were up slightly, following soybeans.
CORN futures in Chicago finished one to three cents US per bushel lower Monday, reacting to expectations that the USDA’s weekly crop report will show a large jump in corn planting progress.
The USDA releases their report later Monday, and are expected to say more than 50 per cent of the corn crop was in the ground as of Sunday, up from 19 per cent the week prior.
Forecasts calling for rain that will benefit early seeded crops in parts of the US Midwest later this week were also bearish.
However, strength in soybeans and sentiment that the market is oversold limited the declines.
WHEAT futures at the Chicago Board of Trade closed one to three cents US per bushel weaker, undermined by forecasts calling for more beneficial rain in US winter wheat growing regions this week.
Continued slow export demand for US wheat added to the bearish tone, as did renewed strength in the US dollar, market watchers said.
Though, ideas that recent losses are overdone provided some support for values.
• The Wheat Quality Council is beginning their crop tour of winter wheat in the state of Kansas in the United States this week.
• The German wheat crop is expected to total 25.6 million tonnes in 2015, down from the very large 27.7 million tonnes grown in 2014, ADM Germany predicted.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
