By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, May 31 (CNS Canada) – ICE Futures Canada canola contracts ended mixed on Tuesday, in volatile month-end trading.
The July contract closed lower as traders unwound July/November spreads.
The rest of the market gathered underlying support from losses in the Canadian dollar.
A weaker loonie makes canola more appealing to international buyers.
Spillover support from Chicago Board of Trade soy oil and overnight gains in Malaysian palm oil added to advances.
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However, beneficial rains in Western Canada limited gains. Canola had been given a weather premium due to dryness in previous sessions.
About 29,301 canola contracts traded on Tuesday, which
compares with Monday when 3,962 contracts changed hands. Spreading accounted for about 19,736 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
SOYBEAN futures generally suffered modest losses of 3 to 8 cents per bushel Tuesday, on ideas that millions of acres may be switched out from corn into soybeans.
As well, forecasts suggest rainy weather is unlikely to delay planting efforts in the Midwest.
However, some of the more deferred values rose slightly on reports that crop losses in Argentina could cut into that country’s exports by a significant margin.
Soyoil rose 34 points higher, with some spreading from soymeal a feature.
SOYMEAL futures declined on reports that some livestock dealers are looking to DDG’s and corn as cheaper feed alternatives.
Wheat futures on the Chicago Board of Trade declined 16 to 17 cents per bushel as predictions of wheat production in the Black Sea region were on the high side.
Large supplies in other parts of the world also weighed down values.
There are ideas that a pending USDA report will show that the US winter wheat crop is improving.
Corn futures finished 5 to 8 cents lower due to favourable weather conditions and some profit-taking at the highs.
Planting efforts in the US are nearly complete, which was also bearish.
The Safrinha corn harvest in Brazil is off to an early start, according to a report.
– According to the USDA’s weekly export, inspection numbers for corn came in at 786,000 tonnes while soybeans hit 182,000 tonnes. Wheat export inspections were pegged at 494,000 tonnes for the week.
– China sold 38 million tonnes of wheat from their reserves on Tuesday.
