By Phil Franz-Warkentin, MarketsFarm
Winnipeg, April 4 (MarketsFarm) – ICE Futures canola contracts ended higher on Thursday, after trading to both sides of unchanged in choppy activity throughout the session.
Gains in Chicago Board of Trade soybeans and soyoil provided some underlying support, amid increasing optimism over the possibility of a trade deal between the United States and China. However, uncertainty over Canada’s own trade dealings with China kept some caution in the canola market.
Spring road bans and a lack of significant farmer selling provided some additional support for canola.
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About 26,479 canola contracts traded on Thursday, which compares with Wednesday when 25,085 contracts changed hands. Spreading was a feature, accounting for 22,312 of the contracts traded as speculators rolled positions out of the nearby May futures.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday.
Negotiations between China and the United States are taking place in Washington, D.C. this week, and U.S. President Donald Trump is set to meet with China’s vice premier later Thursday.
The U.S. Department of Agriculture reported weekly soybean export sales of nearly two million tonnes, with China the major buyer. The weekly sales came in above expectations.
However, large old crop supplies, South American harvest pressure, and expectations that Midwestern flooding will see some intended corn acres go to soybeans instead tempered the upside.
CORN futures were stronger, as trade optimism and Midwestern flooding provided some support. Corn traders were also still trying to get a sense on how much stored grain was lost by the recent flooding.
Weekly U.S. corn export sales came in below expectations at 537,300 tonnes, putting some pressure on values.
WHEAT futures were mixed, with losses in the Minneapolis and Chicago contracts, and gains in Kansas City hard red winter wheat. Spread adjustments between the three contracts were a feature of the activity.
Weekly U.S. wheat export sales of 704,700 tonnes for old crop and 312,800 tonnes for new crop beat expectations and provided some support.
