By Phil Franz-Warkentin, MarketsFarm
Winnipeg, May 13 (MarketsFarm) – ICE Futures canola contracts were mixed at Monday’s close, with the most active July contract seeing a late correction off of earlier losses.
Losses in Chicago Board of Trade soybeans and soyoil put spillover pressure on the canola market for most of the day, as heightened trade tensions between China and the United States sent soybeans to fresh ten-year lows. Canada’s own ongoing trade issues with China added to the softer tone in canola.
Relatively favourable seeding weather across Western Canada also weighed on prices.
However, support was uncovered to the downside and the July canola contract saw a late bounce. A weaker tone in the Canadian dollar was also supportive.
About 22,847 canola contracts traded on Monday, which compares with Friday when 10,599 contracts changed hands. Spreading accounted for 14,934 of the contracts trade.
SOYBEAN futures at the Chicago Board of Trade were lower on Monday, as the market reacted to heightened trade tensions between China and the United States.
After the U.S. increased tariffs on US$200 billion worth of Chinese imports last week, China has retaliated by announcing tariffs on US$60 billion worth of U.S. goods.
U.S. President Donald Trump took to Twitter today to make more threats against China, adding to concerns over the global economy and sending U.S. equity markets sharply lower.
Improving Midwestern weather forecasts and expectations that farmers will make some good seeding progress over the next week also weighed on values.
However, soybeans settled well off their lows, with chart-based positioning providing some support.
CORN futures were higher, as gains in wheat and solid export demand provided support.
The U.S. Department of Agriculture reported weekly corn export inspections of about one million tonnes.
The slow pace of spring seeding also provided some support.
However, the general turmoil in the global markets brought on by the U.S./China trade concerns tempered the upside.
WHEAT futures were higher, with the biggest gains in the winter wheats as they saw a correction after last week’s losses.
Weekly US wheat export inspections came in at 842,418 tonnes, which was roughly double the previous week.
The U.S. spring wheat crop is only about a third seeded, according to estimates. That is well off the normal for this time of year when 70 percent of the crop would be planted.
Commodity Future Prices
Prices are in Canadian dollars per metric ton