By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 27 (CNS Canada) – ICE Futures canola contracts settled with small gains on Friday, although activity was thin and choppy in very light volumes.
Gains in Chicago soybeans and soyoil provided some spillover support. Persistent dryness concerns in parts of western Canada and the need to keep some weather premiums in the market added to the firmer tone in canola.
However, conditions remain favourable overall, with the looming harvest limiting end user demand.
The canola contract will no longer be based out of Canada after Friday’s close, with clearing and trading operations moving to New York as of Monday, July 30. While the contract specifications will remain the same, the move may have accounted for the thin volumes on Friday.
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About 7,584 canola contracts traded, which compares with Thursday when 8,812 contracts changed hands. Spreading accounted for 2,602 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, as good export demand provided support.
While China isn’t buying any soybeans from the United States right now, the decline in prices caused by the trade war has made beans more attractively priced for other global customers.
The USDA reported a flash sale of 154,100 tonnes of soybeans to unknown destinations this morning.
World soybean production was forecast at 359 million tonnes by the International Grains Council in a report. That would be up by one million from an earlier estimate.
CORN futures held steady on the day, finishing within a penny of unchanged as the market saw some consolidation following the gains posted earlier in the week.
Flash sales of 270,000 tonnes of corn to unknown destinations were reported this morning.
The International Grains Council lowered their world corn ending stocks by four million tonnes, to 249 million, citing expectations for increased consumption.
WHEAT futures were mixed on Friday, with gains in Minneapolis spring wheat, but losses in the Chicago and Kansas City winter wheats.
The declining production prospects out of Europe and the Black Sea region saw the IGC lower their world wheat production estimate for this year to 721 million tonnes. That’s down by 16 million from an earlier estimate and by 37 million from last year.
The U.S. Wheat Quality Council wrapped up its tour of U.S. spring wheat fields, pegging the crop at 41.1 bushels per acre. That would be up by three bushels from last year, but below the five-year average of 45.4 bushels per acre.
