By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 9 (MarketsFarm) – The ICE Futures canola market was higher at Tuesday’s close after posting losses for most of the session as chart-based positioning came forward to provide support.
Declines in crude oil had spilled into world vegetable oil markets, with losses in Chicago soyoil accounting for some spillover selling pressure in canola. However, while soyoil stayed lower on the day, crude oil managed to recover higher with European rapeseed also showing some strength.
In a report out Tuesday morning, Statistics Canada pegged canola stocks in the country as of March 31 at 5.95 million tonnes, which would be up from 5.16 million at the same time a year ago but well off the five-year average of 8.76 million tonnes.
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About 26,934 canola contracts traded on Tuesday, which compares with Monday when 26,769 contracts changed hands. Spreading accounted for 15,046 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Tuesday, as the active United States planting pace weighed on prices.
Soybean seeding was 35 per cent complete in the U.S. as of this past Sunday, which was slightly ahead of trade expectations and well above the average of 21 per cent done for this time of year. Emergence was pegged at nine per cent.
The U.S. Department of Agriculture will release its latest supply/demand estimates on Friday, May 12. Expectations ahead of the report are wide ranging, with some analysts expecting tightening soybean ending stocks and others expecting to see an increase. The report will also include the first official new crop production estimates for the upcoming growing season.
CORN was down sharply on the day, with news that China had cancelled 272,000 tonnes of previously reported purchases behind some of the selling pressure.
Good U.S. seeding progress was also bearish, with the country’s corn crop 49 per cent seeded as of this past Sunday. That compares with the 42 per cent average for this time of year.
WHEAT was mixed, with losses in Chicago soft wheat and gains in the hard red wheats.
U.S. winter wheat condition ratings edged up to 29 per cent good to excellent, from 28 per cent a week ago, although 44 per cent was still poor to very poor and a number of key wheat producing states saw their ratings drop. Spring wheat in the country was only 24 per cent planted, well off the 38 per cent average and the fourth slowest on record.
The ongoing conflict in Ukraine remained a feature in the background, with no agreement yet to extend the Black Sea grain corridor deal that is expected to expire on May 18.
