By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 22 (MarketsFarm) – The ICE Futures canola market was stronger on Monday, seeing some follow-through buying interest after Friday’s rally as sharp gains in Chicago Board of Trade soyoil provided support.
Bullish chart signals and ongoing concerns over tight old crop supplies contributed to the move higher in canola.
However, the new crop months lagged to the upside, as buying interest backs away at these high price levels and expectations mount for increased canola acres this spring.
About 18,171 canola contracts traded on Monday, which compares with Friday when 28,949 contracts changed hands. Spreading accounted for 14,960 of the contracts traded.
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SOYBEAN futures at the Chicago Board of Trade were narrowly mixed on Monday, as divergent moves in soyoil and soymeal pulled on the market.
Soyoil was up sharply on the day, posting a limit-up move in the nearby May contract. Meanwhile, soymeal posted equally large losses. Soybeans themselves were caught in the middle of the product-value positioning, holding relatively steady in the most active months.
The advancing Brazilian harvest and some much needed moisture for soybeans in Argentina put some pressure on prices.
The United States Department of Agriculture’s planting intentions report will be released March 31, and pre-report positioning should be a feature over the next few days. General expectations are for an increase in both soybean and corn acres on the year at the expense of unseeded land, but the extent of any changes remains to be seen.
CORN was weaker, with profit-taking after Friday’s rally a feature.
After large Chinese purchases of U.S. corn just about every day last week, the lack of any fresh business on Monday had investors booking profits.
WHEAT futures were mostly lower, as improving moisture conditions across the U.S. Plains weighed heavily on Kansas City hard red winter wheat.
Crop prospects out of the Black Sea region have also shown some improvement lately.
