By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
Winnipeg, June 22 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Thursday, settling just above major support in the new crop November contract.
November canola touched a session low of C$472.40 per tonne before uncovering some support. That contract has not settled below C$472 per tonne in 15 months, despite testing the level on a number of occasions.
Losses in the Chicago Board of Trade soy complex and a firmer tone in the Canadian dollar contributed to the declines in canola, according to participants.
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Relatively favourable Canadian crop conditions were another bearish influence, although some persistent areas of concern in parts of the Prairies helped temper the declines.
Tightening nearby supplies and ideas that canola is looking oversold at current levels also provided some support, keeping the old crop July contract underpinned compared to the more deferred months.
About 41,213 canola contracts traded on Thursday, which compares with Wednesday when 21,439 contracts changed hands. Spreading was a feature, accounting for 21,984 of the contracts traded as participants rolled out of the front month.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade suffered losses of 13 to 14 cents per bushel on Thursday, dragged down by disappointing export numbers and a lack of fresh news.
Weather conditions in many areas of the US Midwest are improving, which was bearish.
A port strike in Argentina has ended, which also pushed down prices.
SOYOIL futures ended 30 to 32 points lower on Thursday.
SOYMEAL futures also finished weaker.
WHEAT futures in Chicago ended three to four cents weaker on Thursday, due to speculative selling and improving weather conditions in Europe.
Traders continued to take profits amid ideas the market was overbought.
On the other side, drought-like conditions are getting worse in certain sections of the US Northern Plains.
CORN futures in Chicago declined by four to six cents on forecasts calling for scattered showers and milder temperatures in the US Corn Belt.
Crop conditions in the US did not improve this week as much as many analysts had predicted, which continued to weigh on prices.
However, grain loadings in the US south have been curtailed by Tropical Storm Cindy, which supported the market.
