By Phil Franz-Warkentin
Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was weaker on Tuesday after trading to both sides of unchanged in choppy activity.
Chart-based speculative selling contributed to the declines as the nearby July contract fell below the psychological C$700 per tonne level. However, the new crop contracts lagged to the downside, as the intermonth spreads narrowed in.
Losses in Chicago soyoil and Malaysian palm oil added to the bearish sentiment in canola, although European rapeseed was up on the day.
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Tightening supplies and the need to ration demand also remained supportive.
Statistics Canada is set to release updated stocks data as of March 31 on Thursday.
There were 36,014 contracts traded on Tuesday, which compares with Monday when 42,837 contracts changed hands. Spreading accounted for 20,302 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, as losses in soyoil, good Midwestern weather and ongoing trade uncertainty weighed on prices.
Soybean planting in the United States hit 30 per cent complete in the latest crop progress update. That was in line with expectations and well ahead of the 23 per cent average for this time of year.
A lack of biofuel blending mandates from the Environmental Protection Agency and cuts to the agency’s budget were thought to be weighing on the soy complex.
CORN was also pressured by the good weather and planting progress, with 40 per cent of intended U.S. corn acres in the ground as of this past Sunday. That was slightly ahead of the five-year average of 39 per cent seeded.
However, values were mixed at the close as solid export demand underpinned the nearby contracts.
WHEAT was steady to higher despite improving crop ratings.
Condition ratings for winter wheat in the U.S. improved to 51 per cent good to excellent, beating trade estimates and the five-year average.
An estimated 44 per cent of intended spring wheat acres in the U.S. were planted as of May 4, which was 10 points ahead of the average for this time of year.
Dryness in China’s major wheat growing province of Henan was supportive, amid ideas China could increase wheat imports.
