By Marlo Glass, MarketFarm
WINNIPEG, May 11 (MarketsFarm) – Intercontinental Exchange (ICE) Futures canola contracts were stronger on Monday, following a weekend of cold weather and some instances of snow.
While temperatures weren’t cold enough to damage canola crops, snow in parts of southwestern Manitoba and southeastern Saskatchewan have prevented producers from getting last year’s canola crop off of fields, which also delayed seeding progress.
Short covering was a supportive feature in trading activity, as the spread between the July and November contracts is narrowing.
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Relative weakness in the Canadian dollar prevented further gains for canola prices. The dollar was at 71.3 cents at midday.
On Monday, 17,075 contracts were traded, which compares with Friday when 18,387 contracts changed hands. Spreading accounted for 8,610 contracts traded.
SOYBEAN futures at the Chicago Board of Trade (CBOT) were higher on Monday, ahead of the World Agriculture Supply Demand Estimates (WASDE) from the United States Department of Agriculture (USDA). Soyoil and meal incurred losses on the day.
Trade expectations ahead of the WASDE peg new crop soybean carryover to total 432 million bushels in the U.S.
Last week, soybean export inspections totalled almost 497,000 tonnes.That’s down by 9 per cent year over year, but monthly year-to-date soybean sales are still ahead of last year’s pace.
CORN futures were weaker today.
Market expectations ahead of the WASDE are for new crop corn ending stocks to total 3.4 billion bushels in the U.S. That’s in addition to the 4.14 billion bushels of corn that are expected to be produced this year.
Last week, U.S. corn shipments totalled 1.335 million tonnes. Corn shipments for the marketing year total almost 985 million bushels.
WHEAT futures were narrowly mixed today, with losses observed in Kansas City and Chicago July wheat. Minneapolis spring wheat saw slight gains due to cold weather and frost in key growing regions.
Ahead of the WASDE tomorrow, wheat production is expected to average 1.84 billion bushels in the US. The average estimate for new crop carryout is 824 million bushels.
Wheat export inspections for the marketing year total just over 23 million tonnes as of May 7.
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