By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 11 (MarketsFarm) – The ICE Futures canola market was steady to higher in the most active months at Thursday’s close, although the market settled well off of its session highs after running into chart resistance.
Sharp weakness in the Canadian dollar, which lost roughly a cent relative to its United States counterpart, provided underlying support for canola for much of the session by helping boost crush margins and keeping speculators covering short positions.
However, Chicago Board of Trade soyoil futures were down sharply, which put some spillover pressure on canola.
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Chart-based selling also came forward, as the July contract attempted a move above C$470 per tonne for the second straight session.
About 31,105 canola contracts traded on Thursday, which compares with Wednesday when 47,779 contracts changed hands. Spreading accounted for 19,456 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade settled near unchanged on Thursday, as updated supply/demand estimates from the United States Department of Agriculture were seen as largely neutral.
The USDA reported private export sales of 720,000 tonnes of soybeans to China this morning, confirming rumours that had circulated yesterday. Weekly export sales were also solid, coming in above trade guesses.
The monthly supply/demand report included a five million bushel increase in projected old crop stocks, but a 10 million bushel downward revision for the new crop carryout – now seen at 395 million bushels. That was well below average trade guesses.
World soybean ending stocks for 2020/21 were down two million tonnes from an earlier estimate, to come in at 96.3 million tonnes.
CORN futures were stronger on the day, with tighter world ending stocks behind some of the gains.
The USDA corn supply/demand numbers were only adjusted slightly, with both old and new crop carryout up by five million bushels from an earlier estimate and in line with expectations.
WHEAT futures were lower across the board, with the largest losses in Kansas City hard red winter wheat.
U.S. wheat production for 2020/21 was forecast at 1.877 billion bushels, which was up by 11 million from an earlier estimate and at the higher end of trade guesses. World wheat carryout was upped by nearly six million tonnes, to a new record of 316.1 million tonnes. Trade expectations had generally been for tighter wheat stocks.
