By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, May 23 (CNS Canada) – ICE Futures Canada canola contracts ended higher on Tuesday, propped up by seeding delays and low commercial stocks.
Rain is expected to fall in parts of the Western Prairies this week which should delay planting, according to a trader in Winnipeg.
“In parts of northeast Saskatchewan and central-north Alberta, the soils were just getting to workable in the last four or five days,” he said, adding more rain could set their timetables back a week.
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Commercial stocks of canola are tight in Canada and many farmers are too busy to sell supplies these days, which was supportive for the market.
However, losses in the US soy complex undermined prices while the steady flow of soybean exports from South America was bearish.
Declines in the US soy complex undermined prices.
About 14,665 canola contracts traded on Tuesday, which compares with Friday when 17,775 contracts changed hands. The Canadian market was closed on Monday due to Victoria Day. Spreading accounted for 7,752 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed six to eight cents per bushel weaker on Tuesday, pressured by seeding progress in the US.
Seeding progress reported by the United States Department of Agriculture was well-above the week prior, which is bearish.
The government agency says about 53 per cent of the country’s crop has been seeded, which is higher than analysts had expected.
Forecasts for continued favourable planting conditions in key growing areas were also bearish.
Spill-over pressure from soy oil and Malaysian palm oil added to the market’s downside.
SOYOIL prices closed lower on Tuesday, tracking Malaysian palm oil.
SOYMEAL closed lower on Tuesday.
CORN futures closed three to five cents per bushel weaker on Tuesday, also pressured by seeding in the US.
The USDA says corn seeding is about 84 per cent finished, with mostly good emergence reported, which pressured values.
However, reports of strong demand for the commodity capped losses for the grain.
WHEAT closed one to five cents per bushel weaker on Tuesday.
The market was feeling spill-over pressure from losses in the soybean and corn markets.
Reports that winter wheat crop conditions have improved further added to the downside.
