By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, April 19 (MarketsFarm) – The ICE Futures canola market settled mixed on Monday, with only the nearby May contract posting losses as speculators exited the front month ahead of its expiry.
New contract highs were set in many of the deferred months, with tight supplies underpinning the old crop July contract and weather uncertainty providing support for the new crop months, according to participants.
Gains in Chicago Board of Trade soybeans provided underlying support for canola as well, but soyoil was softer on the day.
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About 22,174 canola contracts traded on Monday, which compares with Friday when 26,749 contracts changed hands. Spreading accounted for 9,718 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Monday, with speculative buying a feature.
Tight old crop supplies remained a supportive influence in the soybean market, with both exports and the domestic crushing demand running at a solid pace.
General weakness in the United States dollar was also supportive, as the softer currency makes exports more attractive to global buyers.
Adjustments to the product spreads were a feature in the bean market, with soymeal moving higher, but soyoil lower.
Forecasts calling for cold temperatures and a winter storm across a large section of the U.S. Midwest over the next few days could lead to some intended corn area go into soybeans instead, which tempered the advances to some extent.
CORN was supported by the U.S. weather forecasts. In addition to the slow pace of spring seeding, corn fields already starting emerge were thought to be at risk of frost damage.
Dryness hampering the second corn crop in Brazil and the weaker U.S. dollar added to the firmer tone.
However, while corn seeding could see some delays, any moisture will be beneficial for crops in the long run and it will only take a small window of opportunity for farmers to seed their fields.
WHEAT futures were narrowly mixed on the day, finishing well off of their session highs after running into chart resistance.
Persistent dryness concerns in Canada and the northern U.S. provided some support.
Mounting tensions between Ukraine and Russia were being followed closely by wheat traders, given the possibility of disruptions to the global wheat trade.
