By Phil Franz-Warkentin, MarketsFarm
Winnipeg, July 5 (MarketsFarm) – The ICE Futures canola market was weaker on Friday, hitting fresh contract lows as a move below nearby chart support triggered additional fund selling. Ongoing concerns over Chinese demand added to the softer tone.
The losses were likely exaggerated by thinner volumes, with many participants still on the sidelines after Thursday’s Fourth of July holiday in the United States. Chicago Board of Trade soybeans and soyoil were both lower on Friday.
Improving moisture conditions in parts of Western Canada also weighed on values. However, there are also still plenty of areas of concern across the Prairies to keep some weather premiums in the market and canola managed to settle well off its session lows for the day.
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About 17,066 canola contracts traded on Friday, which compares with Thursday when 4,112 contracts changed hands. Spreading accounted for 3,482 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, taking back Wednesday’s gains as activity resumed after the Independence Day holiday.
Weekly United States soybean export sales came in at just over a million tonnes of old and new crop business combined, with China a major customer buying about 600,000 tonnes, according to U.S. Department of Agriculture data.
While the export news was supportive, beans turned lower on improving Midwestern weather forecasts and expectations for large U.S. soybean supplies.
The ongoing uncertainty over the trade dispute with China, despite the latest weekly purchases, also weighed on soybeans.
CORN settled with small gains in the most active months, seeing some consolidation after Wednesday’s rally.
Expectations that actual seeded acres likely ended up below the USDA’s projection contributed to the gains. Slow development and likely yield losses were also supportive.
Weekly U.S. corn export sales came in at just over 300,000 tonnes of old and new crop business combined.
WHEAT futures were mixed, with a steady tone in the winter wheats and losses in Minneapolis spring wheat.
Weekly U.S. wheat export sales were in line with trade expectations, at about 275,000 tonnes. While that was down on the week, total wheat export commitments during the first month of the marketing year are running well ahead of the 2018 pace so far.
The U.S. winter wheat harvest is still behind normal, but farmers are reportedly starting to make some progress with early yield and quality reports beating expectations for the most part.
