By Phil Franz-Warkentin, MarketsFarm
Winnipeg, April 18 (MarketsFarm) – ICE Futures canola contracts fell to fresh contract lows on Thursday, retreating from earlier gains as the ongoing trade tensions with China had speculators on the sell side ahead of the long weekend.
Markets will be closed on April 19 for Good Friday.
While the path of least resistance was pointed lower for canola, gains in Chicago Board of Trade soyoil and a weaker tone in the Canadian dollar provided some support.
Expectations for reduced Canadian canola acres this spring also underpinned the futures, although traders are unsure just how many acres may be lost due to rotational issues and a lack of viable alternatives.
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Statistics Canada releases its first acreage estimates of the year on Wednesday, April 24.
About 32,171 canola contracts traded on Thursday, which compares with Wednesday when 37,591 contracts changed hands. Spreading accounted for 23,422 of the contracts trade.
SOYBEAN futures settled with small gains on Thursday, as expectations for trade talks between the United States and China next week kept some optimism in the market ahead of the Easter long weekend.
The U.S. Department of Agriculture reported weekly U.S. soybean export sales of about 400,000 tonnes, which was at the lower end of trade estimates. However, both soyoil and soymeal sales were solid.
Rising production estimates out of South America kept some caution in the bean market.
CORN futures were steady, lacking any clear direction as traders adjusted positions ahead of the long weekend.
Weekly U.S. corn export sales came in at just under a million tonnes, topping pre-report expectations.
The slow start to spring seeding across the Midwest provided some support for corn, but the moisture causing the delays should help yields in the long run.
WHEAT futures were mostly lower. Weekly U.S. wheat export sales included 317,700 tonnes of old crop business and 227,800 tonnes for delivery in 2019/20. The sales were in line with market expectations.
