By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 3 (MarketsFarm) – The ICE Futures canola market was weaker on Thursday, pressured by speculative profit-taking as a downturn in Chicago Board of Trade soyoil futures weighed on values.
Soyoil had climbed to its highest levels in 10 years at one point, but ran into resistance and settled with steep losses. Canola had lagged soyoil to the upside and also lagged to the downside, which helped temper the declines in the Canadian oilseed to some extent.
Persistent concerns over hot and dry weather conditions across Western Canada were also supportive, with much of the Prairies in need of precipitation.
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The Canadian dollar was weaker on Thursday, providing some support for canola.
About 16,767 canola contracts traded on Thursday, which compares with Wednesday when 17,304 contracts changed hands. Spreading accounted for 5,378 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, taking some direction from soyoil.
Soyoil prices had climbed to their highest levels in 10 years before the buying interest subsided and profit-taking came forward to weigh on prices
Large production estimates out of Brazil were also bearish, although dry conditions in the South American country have lowered river levels and may slow export movement.
Hot and dry Midwestern weather forecasts helped temper the declines, with tight global vegetable oil supplies and increasing demand from the biofuel sector also supportive.
CORN also turned lower after early gains as speculators booked profits.
Persistent hot and dry weather in Brazil remained supportive, limiting the losses.
Weekly ethanol data confirmed the third-straight increase in United States production of the renewable fuel, with the 1.034 million barrels per day marking the best level since before the COVID-19 pandemic.
WHEAT futures were lower across the board, taking direction from corn and soybeans.
Hot and dry conditions in the spring wheat growing regions had lent Minneapolis futures some early support, but relatively favourable moisture conditions in winter wheat regions weighed on the wheat market overall.
Dry wheat growing areas of Russia have also received some welcome rain recently.
