North American Grain/Oilseed Review: Canola strengthens amid dryness concerns

By Phil Franz-Warkentin, Commodity News Service Canada

Winnipeg, May 15 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Tuesday, with weakness in the Canadian dollar behind some of the strength.

Dryness concerns across much of the Prairies were also supportive. Many areas are in need of moisture, but there is little in the nearby forecasts.

A lack of significant farmer selling added to the firmer tone, as producers remain busy with spring seeding.

However, losses in Chicago Board of Trade soyoil and soymeal futures put some pressure on values. Large old crop supplies and expectations for record large acres this year also weighed on prices, according to participants.

About 11,769 canola contracts traded, which compares with Monday when 11,856 contracts changed hands. Spreading accounted for 3,904 of the contracts traded.

SOYBEAN futures traded to both sides of unchanged on Tuesday, but settled with small gains.

Crushers processed 161 million bushels of soybeans in the United States in April, which was a record for the month, according to a report from the National Oilseed Processors Association. The active crush pace was expected, but it saw soyoil stocks climb to 2.092 billion pounds which topped market forecasts and weighed on prices.

The good seeding pace across the country also put some pressure on values, with the U.S. Department of Agriculture reporting 35 per cent of intended soybean acres were in the ground as of this past Sunday. That’s well ahead of the average for this time of year of 26 per cent. Emergence was pegged at 10 per cent, which compares with the six per cent normal for this time of year.

While attention is largely on North American production, the harvest is still ongoing in Argentina and another downward revision to the production estimates out of that country provided some support.

CORN futures were stronger, recovering off of nearby lows as chart-based speculative buying provided support.

U.S. farmers made good progress seeding corn over the past week, with 62 per cent of the crop now in the ground. That’s only one point behind the average.

WHEAT futures were steady to higher. U.S. spring wheat was 58 per cent seeded in the latest weekly report. That was up by 28 points from the previous week, but still off the 67 per cent average for this time of year.

U.S. winter wheat condition ratings were mixed depending on the location over the past week, but generally showed some small improvement overall.

Commodity Future Prices

updated 2018-05-15 13:19
Price Change

Prices are in Canadian dollars per metric ton

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