By Phil Franz-Warkentin, MarketsFarm
Winnipeg, May 29 (MarketsFarm) – ICE Futures canola contracts posted sizeable gains on Wednesday, with continued strength in the Chicago Board of Trade soy complex behind some of the spillover buying interest.
While wet fields and seeding delays across the United States Midwest boosted soybean prices, canola found additional support from worries over dryness in parts of Western Canada.
Speculators covering short positions were a feature, with the rally triggering some stops on the way up.
However, scale-up farmer hedges and ongoing concerns over Canada’s trade dispute with China put some pressure on values.
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About 47,016 canola contracts traded on Wednesday, which compares with Tuesday when 31,197 contracts changed hands. Spreading accounted for 28,406 of the contracts trade.
SOYBEAN futures at the Chicago Board of Trade were up sharply on Wednesday, boosted by persistent Midwestern seeding delays.
Yesterday’s weekly crop progress report from the United States Department of Agriculture showed that only 29 per cent of the country’s soybean crop had been seeded as of this past Sunday. That was well below the average for this time of year of 66 per cent done.
Crop emergence was pegged at 11 per cent, well off the 35 per cent average.
A nationwide strike in Argentina added to the firm tone in the Chicago futures, as grain exports from the South American country have stalled.
Midwestern seeding delays were also supportive for CORN, although the recent strength in that market brought in some farmer selling and corn ran into resistance to end lower after hitting fresh highs overnight.
The U.S. corn crop was only 58 per cent seeded in the latest report, which is well off the 90 per cent average for this time of year. Insurance deadlines have already passed in some states and are fast approaching in others.
WHEAT was lower, seeing a correction after recent gains. Rising production estimates out of Europe put some pressure on values.
However, the losses in wheat came despite declining winter wheat ratings and the slow pace of spring wheat seeding.
The U.S. winter wheat crop was rated 51 per cent good to excellent in the latest weekly report, down five points from the previous week. Spring wheat was 84 per cent planted, which compares with the normal of 91 per cent.
