North American Grain/Oilseed Review: Canola posts solid gains

The ICE Futures canola market was stronger on Tuesday, with chart-based buying a feature as bullish technical signals provided support.

Ongoing concerns over seeding delays across parts of the Canadian Prairies contributed to the strength, although a window of drier weather in Manitoba this week should allow producers there to finally get on their fields.

Tight old crop supplies and intermonth spreading, as investors exit the front month, saw the nearby July contract outpace the new crop months to the upside.

Losses in Chicago Board of Trade soyoil put some pressure on the market, tempering the gains. European rapeseed futures were also lower, although Malaysian palm oil was stronger.

About 13,653 canola contracts traded on Tuesday, which compares with Friday when 17,888 contracts changed hands. Canadian markets were closed Monday for Victoria Day. Spreading accounted for 6,056 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were mixed on Tuesday, holding onto small gains in the front months while the new crop contracts were lower. Adjustments to the product spreads saw soymeal move up and soyoil down on the day.

The United States soybean crop was 50 per cent seeded as of this past Sunday, according to the latest progress report from the U.S. Department of Agriculture. That was only five points off the average for this time of year.

CORN was lower on Tuesday, taking some direction from wheat.

U.S. farmers made good seeding progress over the past week, with 72 per cent of intended corn acres in the ground. That compares with the five-year average of 79 per cent done.

Dryness in Brazil provided some support. The country’s second corn crop is likely seeing yield damage from the lack of moisture.

WHEAT was down across the board, seeing a continuation of last week’s selloff after a brief correction during Monday’s trading session.

Quality ratings for the U.S. winter wheat crop improved slightly over the past week, moving up one point in the good-to-excellent category – to 28 per cent. However, that’s still the worst rating for this time of year in over 30 years.

U.S. spring wheat seeding progress came in at 49 per cent done, well off the five-year average of 83 per cent.

Tags: futures, wheat futures, soymeal, Market, canola, bullish, soybean futures, corn futures, soyoil, rapeseed, palm oil, crop