By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 7 (MarketsFarm) – The ICE Futures canola market was mostly lower on Tuesday, seeing a correction after Monday’s gains.
Warm and dry weather in the eastern Canadian Prairies should allow farmers in the region to make some seeding progress over the next week after wet conditions earlier in the spring caused planting delays. Meanwhile, dry regions of Alberta received some welcome precipitation.
Losses in European rapeseed and Malaysian palm oil futures also accounted for some spill-over selling pressure.
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However, soybeans and soyoil at the Chicago Board of Trade were stronger on the day, providing some underlying support. Tight old crop supplies and uncertainty over the new crop also helped temper the declines.
About 21,665 canola contracts traded on Tuesday, which compares with Monday when 9,295 contracts changed hands. Spreading accounted for 11,118 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were higher on Tuesday, as solid end user demand provided support.
The United States soybean crop was 78 per cent seeded as of this past Sunday, according to a report from the U.S. Department of Agriculture. That was only two points off expectations and in line with the five-year average of 79 per cent done. Emergence at 56 per cent was well off last year’s pace, but only three points behind the average.
CORN was also higher on the day, posting solid gains despite the good pace of spring seeding.
U.S. corn seeding was 94 per cent complete, up two points from the average for this time of year as good Midwestern weather over the past week allowed farmers to make some progress.
The crop was rated 73 per cent good to excellent in the first quality rating of the growing season, which was slightly above trade estimates.
WHEAT was weaker, as the ongoing uncertainty over the situation in Ukraine remained a feature.
Talks between Russia and Turkey are set to take place tomorrow that could possibly lead to Russia allowing grain exports out Ukraine. However, it’s estimated that it would take months to clean up the mines in the Black Sea to make movement out of Ukrainian ports safe again.
The U.S. winter wheat crop was pegged at 30 per cent good to excellent, which was up one point from the previous week. The harvest was just getting started at five per cent complete.
Meanwhile, spring wheat seeding continues to run well behind normal, with 18 per cent of intended acres still unplanted. Usually, U.S. spring wheat would be 99 per cent planted by this time.
