By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, May 16 (CNS Canada) – ICE Futures Canada canola contracts settled narrowly mixed on Monday, after bouncing around both sides of unchanged in choppy activity as traders weighed accounts of frost damage over the weekend against forecasts calling for beneficial rainfall in dry Alberta later this week.
Temperatures fell below freezing across most of Western Canada over the weekend. The general sentiment was that most of the emerged canola made it through the frost in reasonable shape, but the extent of any damage was still being assessed on Monday.
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Meanwhile, attention was turning to forecasts calling for rainfall across much of the dry areas of Alberta later this week.
Gains in CBOT soyoil provided underlying support for canola. The Canadian dollar was stronger on Monday, which put some pressure on the other side.
About 12,593 canola contracts were traded on Monday, which compares with Friday when 16,853 contracts changed hands.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed mixed on Monday.
United States Department of Agriculture (USDA) supply and demand estimates show the expectation for increased demand, which is bullish.
Stronger crude oil prices were also a feature on Monday, as higher crude prices increase the likelihood that processors will blend above mandated amounts of soybeans into biodiesel.
Spillover support from the soy oil market was also a feature on Monday.
But profit-taking and improved weather in Argentina added pressure.
Drier conditions in Argentina are supporting the country’s crop, which is expected to have seen significant losses due to wet conditions.
Analyst forecasts for increased US seeding this year also had a bearish effect.
SOYOIL prices settled stronger on Monday, tracking gains in Malaysian palm oil.
SOYMEAL closed weaker on Monday.
CORN futures closed stronger on Monday, supported by strong export demand.
South Korea has bought increased amounts of the grain, according to USDA data.
But higher levels of farmer-selling due to stronger prices limited gains on Monday.
WHEAT closed mostly unchanged on Monday, pressured by healthy crops in competing growing regions.
Increased production estimates from Ukraine added weakness to the market.
But spillover support from the corn market capped declines.
– Ukraine’s wheat crop is now expected to reach 21.5 million metric tonnes, compared with a previously estimated 19.8 million metric tonnes, according to estimates from one agency.
– Iran is expected to export two million tonnes of surplus wheat this year, according to reports on Monday.
