North American grain/oilseed review: Canola mixed at final bell

By Phil Franz-Warkentin

Glacier FarmMedia | MarketsFarm — The ICE Futures canola market was mixed at Monday’s close, with a small loss in the most-active July contract and gains in the new crop months.

Weakness in Chicago soyoil accounted for some spillover selling pressure in canola, although bullish technical signals and the need to ration demand remained supportive overall.

Canola contracts held above most major moving averages, with speculators actively covering short positions in the latest commitments of traders data.

There were 59,940 contracts traded on Monday, which compares with Friday when 56,440 contracts changed hands. Spreading accounted for 32,382 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were mixed at Monday’s close, with losses in the front months and a firmer tone in the more deferred positions. Uncertainty over shifting tariff policies out of the United States and China continued to keep some caution in the market.

Weekly U.S. soybean export inspections of 546,348 tonnes were down 33 per cent from the previous week, but still up from what moved the same week a year ago. Monthly U.S. crush data will be released Tuesday.

Chinese trade data showed soybean imports were lower on the year, with first quarter imports of 17.1 million tonnes down 7.9 per cent from a year ago. At only 3.5 million tonnes, China’s soybean imports in March were the lowest for the month in 17 years, with the mounting trade dispute with the U.S. and earlier harvest delays in Brazil thought to be behind the slowdown.

CORN futures were weaker on Monday taking direction from wheat, despite solid export demand.

Weekly U.S. corn export inspections of 1.8 million tonnes were solid — increasing by 34 per cent from the past week.

The USDA reported flash sales of 120,000 tonnes of corn to Japan Monday morning morning.

WHEAT was lower across the board, with forecasts calling for welcome precipitation across dry areas of the U.S. Plains behind some of the selling pressure. Improved Russian crop prospects were also bearish.

European wheat futures hit their weakest levels of the past year, as rains in dry parts of France and Germany eased dryness concerns and strength in the euro cut into export demand.