By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, April 25 (CNS Canada) – ICE Futures Canada canola contracts were up on Monday, as a rally in CBOT soybeans provided support.
Fund buying was a feature, as they built on their net long positions, according to a broker.
Weather uncertainty heading into the growing season was another supportive influence, with parts of the Canadian Prairies said to be in need of rain and others looking for warmer temperatures.
Scale up farmer selling on the other side limited the advances, with some sales targets hit on the way up. Technical resistance at the C$500 per tonne mark was also seen in the most active July contract.
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Losses in soyoil and a late move off of the daily highs in soybeans also put some pressure on canola.
About 31,063 canola contracts were traded on Monday, which compares with Friday when 33,169 contracts changed hands. Spreading was a feature, accounting for 19,914 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although durum prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed higher on Monday, gaining back 7 to 15 cents after sharp losses on Friday.
Wet weather in the US Midwest has slowed seeding, which supported prices.
A long-term forecast for drier-than-normal temperatures in the US added to the advances, as a lack of moisture has the potential to hurt crop-development.
Weather premiums due to concerns about Argentina’s crop added to the bullish tone.
SOYOIL prices settled weaker on Monday, tracking Malaysian palm oil.
SOYMEAL closed higher on Monday, following nearby grain and oilseed markets.
CORN futures closed five to nine cents per bushel higher on Monday, as flooding in some parts of the US Corn Belt has propped up prices.
Rain in that region has also slowed seeding, which further supported prices.
Traders are concerned that dryness in Brazil could reduce Brazil’s production, which is bullish.
WHEAT closed three to four cents per bushel stronger on Monday, tracking gains in the nearby corn market.
However, the progressing winter wheat crop limited gains on Monday.
Wheat growing regions of the US are expected to get beneficial rains, market watchers say.
– Iraq is tendering for 50,000 tonnes of wheat from US, Canada or Australia, market watchers say.
– Analysts say Egypt has purchased 57,000 tonnes of domestic wheat.
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