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North American Grains/Oilseed Review: Canola ends mixed with intermonth spreading

By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada

Winnipeg, Apr. 10 – The ICE Futures Canada canola market finished mixed on Monday due to intermonth spreading. Traders were exiting the May contract in favour of July.

“The spreads narrowed up quite a bit,” said a trader in Winnipeg. “A reflection that the canola outlook is very tight.”

Steep losses in Malaysian palm oil dragged down prices while moderate losses in US soybeans and soyoil were also bearish.

The Canadian dollar was higher relative to its US counterpart, which made canola less attractive to international buyers.

The rapidly-advancing harvest in Brazil undermined prices.

However, global demand for oilseeds remains robust, which was supportive for the market.

Key regions of the eastern Prairies are soggy, which could delay planting.

Around 23,504 canola contracts were traded on Monday, which
compares with Friday when around 25,871 contracts changed hands. Spreading accounted for about 20,110 of the contracts traded.

Milling wheat, barley and durum were all untraded.

Settlement prices are in Canadian dollars per metric tonne.

SOYBEAN futures at the Chicago Board of Trade settled within one cent of unchanged on Monday, lacking any clear direction as the market consolidated within a narrow range to start the week.

The large South American crops weighed on values in the background, as the Brazilian harvest wraps up. However, heavy rains in Argentina could cause some delays there, which provided some support.

Weekly US soybean export inspections of 833,000 tonnes were up by roughly 200,000 tonnes from the previous week.

SOYOIL futures were down on Monday.

SOYMEAL futures were higher on Monday, with spreading against soyoil providing some support.

CORN futures in Chicago were up by five to seven cents per bushel on Monday, as solid export demand and concerns over seeding delays in parts of the US Midwest provided support.

Weekly US corn export inspections topped one million tonnes, at 1.17 million, while the USDA also reported a fresh sale of 101,000 tonnes to ‘unknown destinations.’

Forecasts are calling for rain and snow across much of the Midwest this week, with the moisture likely to cause seeding delays.

WHEAT futures in Chicago were up by four to five cents per bushel on Monday, with chart-based speculative buying a feature.

Weekly US wheat export inspections of 641,000 tonnes were up from 573,000 the previous week.

However, the rain causing delays for corn seeding is generally beneficial for wheat crops, and the improving moisture conditions across the US wheat growing regions tempered the advances. 2

Commodity Future Prices

Canola
2017-04-10 13:25
Price Change
May489.700.60
Jul492.20-0.40
Nov482.00-2.30
Jan484.30-2.30
Milling Wheat
2017-04-10 13:59
Price Change
May225.000.00
Jul226.000.00
Oct223.001.00
Dec227.001.00
Durum
2017-04-10 13:59
Price Change
May273.000.00
Jul272.000.00
Oct264.001.00
Dec264.001.00
New Barley
2017-04-10 13:59
Price Change
May137.000.00
Jul138.000.00
Oct140.000.00
Dec140.000.00

Prices are in Canadian dollars per metric ton

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