By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 29 (MarketsFarm) – The ICE Futures canola market was mostly weaker at Thursday’s close, but off its lows for the session after uncovering some support to the downside.
Sharp strength in the Canadian dollar accounted for some selling pressure in canola. Speculative long liquidation also weighed on prices in early activity.
However, ongoing drought concerns across Western Canada, with forecasts calling for more heat and dryness over the next week, remained supportive.
Gains in Chicago Board of Trade soybeans and soyoil also underpinned canola.
About 13,960 canola contracts traded on Thursday, which compares with Wednesday when 16,948 contracts changed hands. Spreading accounted for 7,868 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, with hot and dry Midwestern weather forecasts accounting for much of the buying interest.
Weekly United States soybean export sales included a net reduction of 79,300 tonnes of old crop business, as cancellations outweighed any fresh business. New crop sales, at 312,000 tonnes, were in line with expectations.
The U.S. Department of Agriculture also announced private export sales of 132,000 tonnes of soybeans to unknown destinations this morning.
CORN was also supported by the Corn Belt weather outlook, with little rain in the nearby forecasts.
Frost in Brazilian corn and wheat growing regions was also supportive.
Weekly U.S. corn export sales included net cancellations of 115,000 tonnes of old crop business, but just over 500,000 tonnes of new crop sales.
WHEAT continued to rally higher, with concerns over the size of the North American spring wheat crop providing support.
A crop tour of U.S. spring wheat growing regions continued to show poor yields, with the hot and dry forecasts doing little favours for the crop.
Solid export demand was also supportive. Weekly U.S. wheat sales of 515,000 tonnes were up nine per cent on the week.
However, seasonal harvest pressure for winter wheat did weigh somewhat on values.
Futures Prices as of July 29, 2021
Prices are in Canadian dollars per metric ton