By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, May 1 – The ICE Futures Canada canola market finished higher on Monday, tracking advances in the US soy complex.
Traders were still switching out old contracts and inter-month spreading was a feature, according to an analyst.
Tightness in Western Canadian canola stocks helped support prices.
Recent wet weather in Western Canada has raised speculation the quality of the crop still left in fields will likely be poor.
The Canadian dollar was slightly weaker relative to its US counterpart, which made canola more attractive to domestic crushers and out-of-country buyers.
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However, the steady stream of soybean exports from South America was bearish for values.
Around 12,488 canola contracts were traded on Monday, which
compares with Friday when around 22,101 contracts changed hands. Spreading accounted for about 4,878 of the contracts traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed ten to 14 cents per bushel higher on Monday, tracking sharp advances in corn and wheat.
Rain in key US growing regions will likely stall harvest progress, adding to the market’s gains.
There are forecasts for more showers in the US Delta region, which could further underpin values in coming sessions.
Strong export demand for the oilseed was also bullish for values.
SOYOIL prices closed higher on Monday.
SOYMEAL closed stronger on Monday.
CORN futures were eight to 11 cents per bushel higher on Monday.
Reports of excessive wetness in key US growing regions, which could lead to reseeding, propped up the grain.
Forecasts for cool temperatures, which will limit drying potential, were also bullish.
Investor short covering was also a feature.
WHEAT closed 18 to 24 cents per bushel higher on Monday. Reports of rain and snow in key growing regions of the US underpinned values.
Snow fell in four Midwest states, reports say, including top-grower Kansas.
That wet weather is expected to hurt the country’s production, which is bullish.
