By Phil Franz-Warkentin, MarketsFarm
Winnipeg, June 13 (MarketsFarm) – The ICE Futures canola market was mixed on Thursday, with losses in the nearby July contract but gains in the more deferred positions as persistent Prairie dryness concerns and excessive moisture in the United States provided support.
The latest weekly crop report from Saskatchewan, released Thursday morning, showed topsoil moisture in the province at 79 per cent short to very short, with patchy germination and slow growth due to the dryness.
Meanwhile, too much rain across the U.S. Midwest continues to hamper seeding operations.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
However, large old crop supplies and the ongoing trade dispute with China tempered the upside.
Intermonth spreading was a feature of the activity, as traders were busy rolling positions out of the nearby July contract and the old/new crop spread reached its widest level of the past year.
About 41,433 canola contracts traded on Thursday, which compares with Wednesday when 36,188 contracts changed hands. Spreading accounted for 33,312 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, seeing some follow-through buying after Wednesday’s gains.
Forecasts calling for more rain across the United States Midwest, which will cause further seeding delays, accounted for much of the strength. While traders had thought at one time that lost corn acres would go into soybeans instead, the window of opportunity for seeding beans is also closing.
Weekly U.S. soybean export sales came in at about 525,000 tonnes of old and new crop business combined, which was in line with trade estimates.
CORN was also up on the back of the Midwestern weather concerns, hitting fresh contract highs as speculators added to their growing net long positions.
Weekly U.S. corn export sales came in at 168,500 tonnes old crop and 94,100 tonnes new crop, which was in line with expectations. The U.S. Department of Agriculture also announced an additional flash sale of 175,000 tonnes of corn to Mexico this morning.
However, large South American supplies tempered the upside for corn.
WHEAT was higher on the day, taking some direction from corn and soybeans.
Wheat traders were following the weather, with excessive moisture likely leading to harvest delays in the southern Plains
Declining production estimates out of Europe were also somewhat supportive.
END
