By Phil Franz-Warkentin, MarketsFarm
Winnipeg, May 27 (MarketsFarm) – ICE Futures canola contracts were stronger on Monday, although activity was thin and choppy as markets in the United States were closed for Memorial Day.
Excessively wet Midwestern weather is expected to keep soybean and corn futures supported when activity resumes in the U.S. markets.
Dryness concerns in parts of the Prairies and expectations for reduced canola acres were somewhat supportive. Reports of frost in some areas over the weekend also underpinned the market.
However, the ongoing uncertainty over trade relations with
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About 4,977 canola contracts traded on Monday, which compares with Friday when 12,219 contracts changed hands. Spreading accounted for 3,006 of the contracts trade.
Grain and oilseed markets in the United States were all closed on Monday for Memorial Day. Attention will divided between weather and global trade issues when activity resumes tomorrow.
Forecasts are calling for more heavy rains across much of the Midwest, which should cause further seeding delays for the already late corn crop.
Time is quickly running out to meet seeding deadlines for corn and will likely cause some acres shift to soybeans or be left unseeded altogether.
Farmers still have a few weeks to plant soybeans, but bean seeding is also running behind normal and the lateness raises the risk of yield losses down the road.
Soybeans, corn, and wheat futures all posted solid gains on Friday, May 24, on the back of the weather concerns with speculative short-covering a feature.
The funds are still holding very large net short positions, which could leave the grains and oilseeds open to more short covering in the days ahead – especially if the US weather concerns persist.
However, the ongoing lack of progress trade talks between the U.S. and China should also be keeping some caution in the markets.
