By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 6 (MarketsFarm) – The ICE Futures canola market was stronger on Monday, correcting off recent lows to start the week.
Tight old crop supplies and uncertainty over new crop production provided underlying support for canola, with a rally in European rapeseed adding to the gains. However, soyoil futures at the Chicago Board of Trade were mostly lower on the day.
Forecasts calling for better planting weather in the wet eastern Canadian Prairies over the next week put some pressure on values. Meanwhile, dry areas of Alberta are forecast to see some rain.
Read Also
North American grain/oilseed review: Canola falls Friday
ICE Futures canola market was weaker on Friday, settling at its weakest levels in two weeks. Speculative selling was a…
About 9,295 canola contracts traded on Monday, which compares with Friday when 23,708 contracts changed hands. Spreading accounted for 3,108 of the contracts traded.
WHEAT futures were stronger on Monday, posting solid gains as reports over the weekend that Russia had bombed a major Ukrainian grain terminal provided support.
The bombing lessened expectations that Russia would open a corridor for Ukrainian grain exports anytime soon, although talks are scheduled for later this week.
Spring wheat seeding remains well behind normal in the northern United States, with total planted area likely to come in below projections as time runs out for planting.
France’s wheat crop was pegged at 67 per cent good to excellent by FranceAgriMer, down two points from last week.
CORN was up in sympathy with wheat, as the uncertainty over Ukrainian grain exports kept some caution in the market. Chart-based buying added to the gains amid ideas the losses posted last week were overdone.
The U.S. Department of Agriculture’s first quality ratings for this year’s U.S. corn crop will be released after the close.
SOYBEANS held closer to unchanged, lagging the grains to the upside.
Easing covid restrictions in China and resulting strength in equities lent some support to soybeans.
Relatively favourable seeding weather and good conditions for the U.S. crop put some pressure on values. The late spring wheat seeding could also see some intended wheat area switch into soybeans instead.
