By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 8 (MarketsFarm) – The ICE Futures canola market was weaker on Monday, retreating from earlier gains as activity in outside markets weighed on prices.
Speculative short-covering had provided support in early activity, as investors were busy rolling their positions out of the front month. However, losses in the Chicago Board of Trade soy complex and strength in the Canadian dollar eventually pulled prices lower.
Widespread rains in Manitoba and Saskatchewan over the weekend were generally beneficial for already seeded crops, which added to the softer tone.
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However, excessively wet conditions in parts of Alberta remained supportive, with a large portion of intended canola acres still unseeded in the Peace River region.
About 26,546 canola contracts traded on Monday, which compares with Friday when 17,359 contracts changed hands. Spreading accounted for 13,642 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were lower on Monday, with positioning ahead of Thursday’s monthly United States Department of Agriculture supply/demand report a feature.
Average forecasts are calling for relatively steady old crop U.S. ending stocks, but a larger new crop carryout. The world numbers will also be followed closely, with downward revisions to South American production estimates expected.
The USDA reported weekly soybean export shipments of 213,000 tonnes on Monday, which was down on both the week and the year. However, total exports to date were still running slightly ahead of the year ago level.
U.S. farmers continue to make good seeding progress, with about 85 per cent of intended soybean acres thought to be in the ground by now.
CORN futures settled with small gains, with positioning ahead of the monthly USDA report a feature.
Weekly U.S. corn export shipments of 1.1 million tonnes were in line with the previous week’s level, but total exports to date were running about 26 per cent behind the year ago pace.
Midwestern weather remains relatively favourable, with corn seeding estimated to be about 95 per cent done.
WHEAT futures were mixed, with losses in the winter wheats and gains in Minneapolis spring wheat.
Hot and sunny conditions in the southern U.S. Plains over the weekend allowed producers to make good harvest progress bringing in the winter wheat crop, with reported yields in the 40 to 60 bushels per acre area.
However, dryness concerns in Europe and the Black Sea region remained supportive.
