By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 30 (CNS Canada) – ICE Futures Canada canola contracts were mostly lower on Wednesday, as strength in the Canadian dollar and improving moisture conditions across much of the Prairies weighed on values.
The currency was up by roughly three-quarters of a cent relative to its counterpart in the United States, which cuts into crush margins and makes exports less attractive to international buyers.
Losses in Chicago Board of Trade soybeans and bearish technical signals also weighed on values.
Read Also
North American grain/oilseed review: Canola hits two-week highs
Glacier FarmMedia — ICE canola futures were stronger on Friday, hitting their highest levels in two-weeks. Optimism following a recent…
A strike by Canadian Pacific Railway conductors and engineers was overhanging the market for most of the day. However, news of a tentative agreement broke shortly before the close and trains should be back running on Thursday.
Gains in CBOT soyoil were also supportive.
About 28,891 canola contracts traded, which compares with Tuesday when 22,751 contracts changed hands. Spreading accounted for 8,894 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were mostly lower on Wednesday, with the good Midwestern seeding progress behind some of the selling pressure.
The United States soybean crop was 77 per cent seeded, according to the latest U.S. Department of Agriculture report. That was in line with trade guesses and well ahead of the 62 per cent average for this time of year. Emergence was pegged at 47 per cent, which was also ahead of the five-year average of 32 per cent.
Concerns over the ongoing trade dispute between the U.S. and China remained a bearish influence after yesterday’s news that the U.S. was moving forward with plans to place 25 per cent tariffs on US$50 billion worth of Chinese imports. While more talks are set for this week, China has said it is prepared to retaliate.
Continued labour disruptions in Brazil were somewhat supportive, as exports from the country were being curtailed.
CORN futures were also lower, with the U.S. corn crop now 92 per cent seeded. That’s slightly ahead of average for this time of year.
Corn condition ratings were pegged at 79 per cent good to excellent, which would be the best rating for this time of year in more than a decade. Emergence was at 72 per cent.
Weekly U.S. corn export inspections of 1.7 million tonnes came in at the high end of trade guesses, helping temper the declines.
WHEAT futures were down sharply for the second-straight session, seeing some follow-through speculative selling after yesterday’s retreat from nearby highs.
U.S. winter wheat crops were rated 38 per cent good to excellent in the latest USDA report, which was up 2 points from the previous week.
Spring wheat seedings in the U.S. moved slightly ahead of average, at 91 per cent complete. However, emergence was still five points behind average, at 63 per cent.
