By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, March 25 – THE ICE Futures Canada canola market finished mixed on Wednesday, with losses in the nearby old crop contracts while mild gains were recorded in the more deferred values. As old crop canola has gotten more expensive some traders decided to cash out of their positions, an analyst said.
Large funds are likely waiting for the release of the USDA spring planting intentions report on March 31 before making any major moves, said the analyst. At this point it is expected US farmers will plant more soybeans than was thought a few months ago.
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Losses in Malaysian palm oil, European rapeseed futures and CBOT soybeans were bearish for values.
Commercial demand remains steady and there are concerns about dryness in Western Canada which provided some support.
Around 24,540 canola contracts were traded on Wednesday, which compares with Tuesday when around 10,968 contracts changed hands. Spreading accounted for 18,882 of the contracts traded.
Milling wheat, barley and durum were all untraded.
SOYBEAN futures at the Chicago Board of Trade were down by three to five cents per bushel on Wednesday, after bouncing around both sides of unchanged throughout the session.
Positioning against corn was a feature, as delays seeding the corn crop in the southern US is leading to ideas that some of that intended area will be switched over to soybeans – which can be planted later.
The large South American crop remained a bearish influence in the background as well, as those beans will eventually compete with US stocks in the export market.
SOYOIL futures settled with small losses on Wednesday, after chopping around both sides of unchanged throughout the session.
SOYMEAL futures were mostly lower on Wednesday, following soybeans. The losses came despite reports of fresh US soymeal sales to Canada.
CORN futures in Chicago were steady to two cents per bushel higher on Wednesday, hitting fresh two-month highs as supportive technical signals and steady demand provided support.
Ongoing concerns over planting delays in the southern cornbelt were also supportive, with seeding operations running well behind average.
Gains in crude oil helped underpin corn as well, given the grain’s connection to ethanol production.
WHEAT futures in Chicago were down by four to five cents per bushel on Wednesday, with improving US crop prospects behind some of the selling pressure. Minneapolis and Kansas City wheat futures were down by one to three cents.
Forecasts are calling for much needed moisture across some of the drier areas of the US Plains, which will help the winter wheat crops there. In addition, Russia’s winter wheat crop is reported to have made it through the winter in better shape than had been expected.
– While there are more showers in the forecasts, analysts cautioned that many of the drier regions of the US Plains may miss out on the latest precipitation.
– Farmers in the United Kingdom are still holding onto large old crop wheat supplies after growing their largest crop in six years in 2014, according to a report from Wynnstay Group which also predicted weaker wheat prices in the UK.
– The export fees imposed by Russia at the beginning of February reduced wheat exports by a third compared to the same time the previous year, according to data from the country.
– The USDA releases its prospective plantings report on Tuesday, March 31.
