By Phil Franz-Warkentin, MarketsFarm
Winnipeg, May 30 (MarketsFarm) – ICE Futures canola contracts were stronger on Thursday, but lagged behind Chicago Board of Trade soybeans as the Canadian oilseed ran into some resistance.
Soybeans rallied on the back of bullish chart signals and seeding delays across the United States Midwest.
Dryness concerns in parts of Western Canada were also supportive for canola, with many areas of Saskatchewan and Alberta in need of precipitation.
However, ongoing uncertainty over Canada’s trade dispute with China kept some caution in the market. Increased farmer hedges and large old crop supplies also weighed on values.
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About 25,313 canola contracts traded on Thursday, which compares with Wednesday when 47,016 contracts changed hands. Spreading accounted for 13,876 of the contracts trade.
SOYBEAN futures at the Chicago Board of Trade continued their rally of the past week, as bullish technical signals kept speculators on the buy side.
Seeding delays across much of the Midwestern United States remained the primary driver in the soybean market, as operations continue to run well behind normal.
However, ideas that some intended corn acres will shift into soybeans instead tempered the upside.
Uncertainty over trade relations between the U.S. and China kept some caution in the market.
CORN was up sharply on Thursday as the market works to encourage farmers planting the crop.
Wet conditions continue to cause seeding delays across much of the Midwest, with more than a third of the country’s corn crop still unseeded in the latest U.S. Department of Agriculture report. Crop insurance deadlines have already passed in some states and are fast approaching in others, and the corn market was rallying in an attempt to convince growers to keep seeding past the usual dates.
WHEAT was higher, with the largest gains in the Chicago and Kansas City winter wheat contracts.
Declining crop conditions in key winter wheat growing regions accounted for some of the strength, as excessive moisture is raising quality issues and may delay the harvest.
However, U.S. wheat remains expensive on the global market, tempering the upside.
