North American Grain/Oilseed Review: Canola ends mixed

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Published: June 10, 2019

By Phil Franz-Warkentin, MarketsFarm

Winnipeg, June 10 (MarketsFarm) – The ICE Futures canola market was mixed on Monday, with strength in the nearby July contract and losses in the more deferred positions as the old/new crop spread narrowed in.

Rain was spotty across Western Canada over the weekend. Manitoba and Alberta saw the most precipitation, while some of the drier areas of Saskatchewan missed out on the moisture.

Drought concerns in Saskatchewan helped give the nearby July contract a boost, as end users look to book some coverage, according to participants.

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Gains in Chicago Board of Trade soybeans were also supportive.

However, large supplies and the ongoing diplomatic dispute between Canada and China weighed on values, contributing to the eventual declines in the new crop months.

About 39,939 canola contracts traded on Monday, which compares with Friday when 15,392 contracts changed hands. Spreading accounted for 33,044 of the contracts trade.

SOYBEAN futures at the Chicago Board of Trade held onto small gains on Monday, recovering from overnight losses.

Weekly United States soybean export inspections of about 715,000 tonnes were up from both the week ago and year ago levels, according to the latest U.S. Department of Agriculture data.

However, total soybean exports to date continue to run well off the previous year’s pace, as the ongoing trade dispute with China hampers movement.

Improved Midwestern seeding weather over the weekend and ideas that farmers made some good progress also tempered the upside.

CORN was steady to lower, as the market reacted to the relatively favourable weekend seeding weather across the Midwest.

Trade estimates place U.S. corn seeding at about 80 to 85 per cent done, as a window of drier weather allowed farmers to make some progress.

However, seeding would usually be done by now, and acres will still be lost on the year due to flooding and excessive moisture.

Weekly U.S. corn export inspections came in at about 850,000 tonnes. That was up on the week, but off the previous year’s pace.

The U.S. and Mexico reached an agreement on immigration over the weekend, helping avert U.S. threats of tariffs on Mexican imports and Mexican retaliation.

WHEAT futures were narrowly mixed, with a softer tone in Minneapolis spring wheat and gains in the winter wheats. Positioning ahead of the weekly crop progress report, due out after the close, was a feature.

Traders were also squaring positions ahead of the monthly World Agriculture Supply and Demand Estimates (WASDE) set for release on Tuesday.

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