By Terryn Shiells and Dave Sims, Commodity News Service Canada
WINNIPEG, May 16 – ICE Futures Canada canola contracts were firmer on Friday, after a day of choppy two sided trade. The evening of positions ahead of the long weekend was a feature of the activity, as Canadian markets will be closed Monday, May 19 for Victoria Day. US markets will remain open.
Ideas that canola is relatively cheap compared to competing oilseeds were supportive, as was steady demand for the commodity.
Further support came from a recent slowdown in farmer selling, as they focus on spring fieldwork and seeding.
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The need to keep a weather premium built into the market kept a firm floor under values.
However, spillover pressure from the declines seen in Chicago soyoil values limited the advances.
The large Canadian canola supply situation and ideas that planting conditions in Western Canada are improving also weighed on the market.
About 16,670 canola contracts were traded on Friday, which compares with Thursday when 18,555 contracts changed hands.
Milling wheat, durum and barley futures were untraded following price revisions after the close on Friday.
SOYBEAN futures at the Chicago Board of Trade were mixed on Friday with losses in the nearby months and gains in the new crop contracts. Adjustments to the July/November spread were a feature of the activity.
Dry and milder conditions are expected through most of next week in the Midwest and should help planting efforts. However rains may come in the north early next week which could create troublesome wet fields for producers.
According to USDA projections, the US will plant 81.5 million acres of soybeans in 2014/15. If that estimate holds to form, one analyst said it could result in the US raising 3.635 billion bushels of soybeans this year.
SOYOIL futures were lower on Friday.
SOYMEAL futures were mixed following soybeans.
CORN futures in Chicago corrected themselves and held steady Friday after Thursday’s large decline. There are reports of good planting progress being made across the Midwest.
Dry weather next week is expected to allow farmers in the northern Great Plains to finish planting, an analyst said.
There are reports of countries cancelling prior purchases of US corn. According to the USDA, Spain cancelled 155,000 metric tons, Guatemala cancelled 11,300 tons and China cancelled 2,000 tons of corn purchases from the US last week.
WHEAT futures in Chicago were three to four cents lower Friday and five to 11 cents on the Kansas City Board of Trade on speculation that rain in Texas and Ohio will improve conditions for crops that are in the “heading” stage of growth.
Drought conditions continue to affect vast stretches of the Southern Plains. Weather forecasts are calling for minimal precipitation at best next week.
Thunderstorms in the Delta next week are expected to bolster soil moisture for earlier-seeded crops but could also delay fieldwork, according to a report.
• Periodic showers and variable temperatures will favor germination and early growth of corn and soybeans in northeast China, according to a report.
• Spelt flour prices are soaring in Europe due to increasing demand and now sit at £2,000 a tonne compared to £800 last year, said analysts.
• Drier weather from eastern Ukraine into Russia and Kazakhstan favors planting and spring fieldwork, an analyst said.
ICE Futures Canada settlement prices are in Canadian dollars per metric ton.
