By Phil Franz-Warkentin, MarketsFarm
Winnipeg, April 2 (MarketsFarm) – ICE Futures canola contracts were stronger on Tuesday in choppy trade, as the market continued to recover from the lows hit last week.
Weakness in the Canadian dollar and strength in Chicago Board of Trade soyoil contributed to the firmer tone, according to participants.
However, canola remains range-bound overall, with uncertainty over the diplomatic dispute between China and Canada keeping some caution in the market.
Large old crop supplies were also still overhanging the market.
Read Also
North American grain/oilseed review: Canola falls Friday
ICE Futures canola market was weaker on Friday, settling at its weakest levels in two weeks. Speculative selling was a…
About 13,757 canola contracts traded on Tuesday, which compares with Monday when 14,597 contracts changed hands. Spreading accounted for 8,542 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Tuesday, seeing some follow-through buying interest after Monday’s gains.
While trade negotiations between the United States and China are still ongoing, increasing optimism that a deal will be reached provided some support.
However, South American harvest pressure tempered the upside, with private forecasts on the size of the Brazilian crop seeing upward revisions
Flooding concerns across parts of the Midwest also kept some caution in the bean market, with some intended corn area likely to go into soybeans instead.
CORN futures were mixed, with small losses in the front months and gains in the more deferred positions.
Up to a million acres of land was impacted by flooding across the Midwest, with other areas also dealing with excessive moisture and the possibility of seeding delays, according to reports.
Uncertainty over threats from U.S. President Donald Trump of shutting the border with Mexico kept some caution in the agricultural markets. While an actual closure is unlikely, Mexico is a major buyer of U.S. corn and traders were watching for any trade disruptions.
WHEAT futures were mixed, with the largest losses in Minneapolis spring wheat as the spreads between the three U.S. wheat markets saw some adjustment.
The U.S. winter wheat crop was rated 56 per cent good to excellent in the first country-wide report of the year from the U.S. Department of Agriculture. That compares with last year when only 32 per cent of the crop was in the top two categories at this time.
Ample world supplies and a lack of significant demand also weighed on wheat values.
