The ICE Futures canola market was mostly lower at Tuesday’s close, retreating from earlier gains as traders booked profits on their large long positions.
The old crop July contract hit fresh highs in early trade before turning lower as the day progressed.
Strength in Chicago Board of Trade soyoil futures and Malaysian palm oil provided some underlying support, although European rapeseed was down on the day.
Tight old crop supplies and uncertainty over new crop protection remained supportive from a fundamental standpoint. Persistent rains in the eastern Prairies continue to slow seeding progress in the region. However, forecasts calling for some much needed precipitation in Alberta will be beneficial for crops there.
About 17,968 canola contracts traded on Tuesday, which compares with Monday when 11,121 contracts changed hands. Spreading accounted for 10,710 of the contracts traded.
WHEAT futures in the United States were stronger on Tuesday, seeing some follow-through buying interest after posting limit up gains on Monday.
The move by India to limit wheat exports to secure domestic supplies remained supportive, although exports registered with customs before May 13 will still be able to move, according to reports.
The United States winter wheat crop was rated 27 per cent good to excellent in the latest weekly report from the U.S. Department of Agriculture. That was down two points from the previous week.
Meanwhile, spring wheat in the US was 39 per cent planted -well off the 67 per cent average for this time of year.
SOYBEANS recovered from earlier losses to post solid gains, with strength in soyoil pulling beans up as well despite losses in soymeal.
U.S. soybean seeding was 30 per cent done as of this past Sunday, nine points off the average.
Crush data released yesterday showed U.S. soybean crushers processed 169.8 million bushels of soybeans in April. That was down by 12 million from the previous month and below pre-report expectations.
CORN was softer on the day, seeing a correction after Monday’s gains.
U.S. corn seeding was 49 per cent complete in the latest weekly report. That was in line with expectations but off the five-year average of 67 per cent done.
