By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 2 – THE ICE Futures Canada canola market ended mixed on Monday with the front-month contract tracking losses in Chicago Board of Trade soyoil while some of the more deferred contracts ended higher on chart-based buying.
Losses in Malaysian palm oil and crude oil were bearish for canola.
Canola has lost of its attractiveness as it has gone from looking quite cheap (for an oilseed) to average priced for buyers.
Wet weather in the US could cause some US farmers to switch out acres intended for corn into soybeans.
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Canola’s July contract ran into technical resistance at C$500 per tonne.
However, US soybeans were higher which helped prop up the market.
Dry weather across Alberta and part of Saskatchewan has cast a weather premium into the market which was supportive.
Around 19,044 canola contracts traded on Monday, which compares with Friday when around 18,489 contracts changed hands.
Milling wheat, barley and durum were untraded and unchanged.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up by nine to 14 cents per bushel on Monday, as a rally in soymeal pulled beans up as well.
Chart-based buying added to the gains, as soybeans traded just below their recently hit highs.
Concerns over the production prospects in Argentina were behind some of the buying interest, although forecasts calling for improving harvest weather in the South American country did temper the gains.
SOYOIL futures were down on Monday, as spreading against soymeal weighed on prices.
SOYMEAL futures were up on Monday, as ideas that production problems in Argentina will shift more demand to the US provided support.
CORN futures in Chicago were steady to up two cents per bushel on Monday, finding some spillover support from the rally in soybeans.
However, relatively favourable US seeding weather limited the advances, with analysts expecting the USDA’s weekly report to show roughly 50 per cent of the corn crop in the ground to date. That would be well ahead of the average for this time of year.
WHEAT futures in Chicago were narrowly mixed at Monday’s close, lacking any clear direction as values consolidated within a narrow range.
Favourable rainfall across the US southern Plains should help boost the yield prospects for the winter wheat there, while there is additional moisture in the forecasts over the next week.
A crop tour of Kansas is taking place this week, and traders will be following reports closely for signs of the prospects out of the major wheat growing state.
– Saudi Arabia reportedly tendered for 620,000 tonnes of milling wheat over the weekend. The wheat was purchased as optional-origin and could come from a number of European, Australian, North American, and South American suppliers.
– Bangladesh rejected a 50,000 tonne cargo of wheat from Russia citing quality concerns over the weekend. The latest rejection comes just two weeks after two other shipments were rejected for the same reason.
