By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 23 (MarketsFarm) – The ICE Futures canola market was lower in the most active contracts at Friday’s close, seeing a modest correction to end the week after posting contract highs in recent sessions.
The underlying fundamentals of tight old crop supplies and solid end-user demand remained supportive, but canola was thought to be due for some profit-taking from a chart-standpoint.
Losses in Chicago Board of Trade soyoil and a firmer tone in the Canadian dollar also weighed on values, although soybeans were slightly higher on the day.
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Statistics Canada releases its first survey-based acreage estimates on April 27. General expectations are for an increase in seeded canola area from the 20.8 million acres planted in 2020, but agronomic factors and competition with other crops may limit the extent of the increase.
About 23,485 canola contracts traded on Friday, which compares with Thursday when 24,305 contracts changed hands. Spreading accounted for 9,676 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger at Friday’s close, after trading to both sides of unchanged throughout the session.
Soybeans were due for some consolidation after hitting their highest levels in seven years earlier in the week, with speculative positioning ahead of the weekend a feature.
Cold temperatures across the Midwest could see some area intended for corn move into soybeans instead if planting delays persist, which also put some pressure on values.
CORN was settled narrowly mixed, as the market took a breather after posting limit-up gains on Thursday.
Cold Midwestern weather remained a supportive influence, as seeding delays and possible damage to already planted fields raised concerns over new crop production.
Dryness in Brazil could also cut into the yield potential of the second corn crop there. However, conditions have recently shown some improvement in Argentina.
WHEAT futures were higher at the close, with the largest gains in Minneapolis spring wheat.
Cold temperatures and risk of damage to winter wheat crops across the United States Plains remained supportive, with dryness for North American spring wheat crops underpinning the futures as well.
Talk that China is looking at shifting its feed rations to include more wheat, in the face of rising corn prices, was also supportive.
Canadian wheat acres are expected to be down on the year, which added to the firm tone.
