By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 28 (MarketsFarm) – The ICE Futures canola bounced around both sides of unchanged on Tuesday, with sharp gains in the nearby May contract ahead of its expiry and a steadier tone in the more deferred positions.
Solid end user demand and spillover from Chicago soyoil provided underlying support. Concerns that wet fields may push back spring seeding in many areas of Western Canada added to the steady tone.
However, strength in the Canadian dollar and losses in Chicago soybeans put some pressure on values.
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Ideas that canola is looking expensive compared to other oilseeds also kept a lid on the upside.
About 15,835 canola contracts traded on Tuesday, which compares with Monday when 28,404 contracts changed hands. Spreading accounted for 11,214 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, as losses in soymeal weighed on values.
The United States soybean crop was eight per cent seeded as of this past Sunday, according to the weekly crop report from the U.S. Department of Agriculture. That was up six points on the week and in line with the five-year average.
Meanwhile, the South American harvest continues to progress, with 56 per cent of Argentina’s soybeans off the field, according to a report from the Buenos Aires Grain Exchange. However, logistical issues in the country continue to hamper export movement.
CORN futures retreated from overnight gains to close lower, amid ideas the advances were overdone.
The general weakness in crude oil and ethanol remained a bearish influence on corn, with the good U.S. planting pace also weighing on prices.
The U.S. corn crop was 27 per cent seeded in the latest weekly report. That was up 20 points on the week, and well above the five-year average.
WHEAT futures were stronger on the day, finding some support from declining U.S. crop ratings.
The U.S. winter wheat crop was rated 54 per cent good to excellent by the USDA, which was down three points on the week and well off the 64 per cent good to excellent reported at this time last year.
Spring wheat seeding in the country was running well behind normal, at only 14 per cent complete. That compares with the five-year average of 29 per cent.
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