By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 31 (MarketsFarm) – The ICE Futures canola market was weaker on Wednesday, seeing follow-through selling pressure after Tuesday’s sharp drop.
Relatively favourable Prairie crop conditions as seeding operations near completion contributed to the declines.
Early losses in crude oil and Chicago soyoil were also bearish, although soyoil found some support and settled near unchanged.
Canola was looking oversold from a chart standpoint, with solid crush margins likely keeping end users in the market on a scale-down basis. Gains in European rapeseed also provided some underlying support.
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About 40,830 canola contracts traded on Wednesday, which compares with Tuesday when 36,640 contracts changed hands. Spreading accounted for 24,892 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were mixed on Wednesday, with a firmer tone in the nearby July contract but losses in the more deferred months.
The good Midwestern planting pace and relatively favourable crop conditions accounted for some of the selling pressure.
The United States soybean crop was 83 per cent seeded as of this past Sunday, which would be well ahead of the 65 per cent average for this time of year. Emergence came in at 56 per cent.
Weekly U.S. export inspections saw 239,700 tonnes of soybeans inspected, which was up by 73,000 from the previous week.
However, large Brazilian soybean crops are said to be displacing U.S. beans in the global export market.
CORN was also pressured by the good U.S. seeding pace, with 92 per cent of intended acres in the ground as of this past Sunday. That compares with the five-year average of 84 per cent seeded.
In the first quality ratings of the year, U.S. corn was pegged at 69 per cent good to excellent, only slightly off the 73 per cent reported at this time last year.
Weekly U.S. corn export inspections of 1.3 million tonnes were down slightly from the previous week, but still solid, marking the seventh week in a row above one million tonnes.
WHEAT was mixed, with losses in Minneapolis spring wheat and gains in the winter wheats on the last trading day of the wheat marketing year.
Farmers made good progress seeding spring wheat over the past week, with 85 per cent of intended acres now in the ground which would be only one point off the average.
Winter wheat was 72 per cent headed, with 34 per cent rated good to excellent. The quality rating was up three points on the week.
However, big wheat crops elsewhere in the world weighed on prices with Russia, Europe, and India all reporting large production.
