By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, May 31 (CNS Canada) – ICE Futures Canada canola contracts were mostly lower on Thursday, as recent rainfall across much of Western Canada had investors taking some of the weather premiums out of the futures.
The improving moisture conditions also encouraged some farmer selling, according to traders.
Losses in Chicago Board of trade soybeans and soyoil put some spillover pressure on canola as well.
However, weakness in the Canadian dollar provided underlying support. The weakness in the currency was tied to news that the U.S. was moving forward with placing tariffs on Canadian steel and aluminum. Canada announced retaliatory measures of its own, and the uncertain prospects of a trade war between the U.S. and Canada kept some caution in the market.
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About 19,308 canola contracts traded, which compares with Wednesday when 28,891 contracts changed hands. Spreading accounted for 12,114 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were mostly lower on Thursday, as persistent concerns over the ongoing trade dispute between the United States and China weighed on values.
The good Midwestern seeding pace was also bearish. More soybean acres could go in the ground, as spring planting runs well ahead of average.
On the other side, a truckers strike in Brazil continued to limit exports from the country, providing some support for the U.S. futures. The poor crop in Argentina also remained supportive. Crushers in the country are only running at 70 per cent capacity, according to a report from the U.S. Department of Agriculture Ag Attaché.
CORN futures were steady to higher, seeing a modest correction after dropping below nearby chart support earlier in the week.
Solid export demand added to the firmer tone, although weekly export data was delayed until Friday due to Monday’s Memorial Day holiday.
WHEAT futures were mostly higher amid ideas that recent losses were overdone. Persistent weather concerns in a number of wheat growing regions of the world also supportive.
The forecasts remain mostly hot and dry through the major U.S. winter wheat growing regions in the southern Plains, while Australia and the Black Sea region also continue to deal with a lack of moisture. Updated production estimates out of Ukraine today predicted a 1.4 million tonne decline in the country’s wheat crop on the year, due to dry weather.
However, conditions were showing some improvement for spring wheat in the northern U.S. and Canada, which put some pressure on the Minneapolis futures.
