By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 10 (MarketsFarm) – The ICE Futures canola market was narrowly mixed at Wednesday’s close, after posting gains for most of the session.
Speculative short-covering helped the nearby July contract climb higher in early activity, as investors were busy exiting the front month. However, that buying interest subsided by the close.
A firm tone in the Canadian dollar, which climbed above 75 U.S. cents for the first time in three months, accounted for some of the eventual weakness in canola. Losses in Chicago Board of Trade soyoil also weighed on values.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
Mixed weather conditions across the Prairies kept some caution in the market, with some areas dealing with excessive moisture and others on the dry side.
About 47,779 canola contracts traded on Wednesday, which compares with Tuesday when 22,427 contracts changed hands. Spreading accounted for 25,212 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted small gains on Wednesday, with talk that China was in the market buying at least two cargoes of beans from the United States behind some of the gains.
However, good U.S. crop weather and weakness in world vegetable oil markets, including soyoil, put some pressure on values
Positioning ahead of Thursday’s U.S. Department of Agriculture supply/demand report was a feature, with updated production, ending stocks, and South American crop estimates all likely to be followed closely.
Brazil’s state-owned CONAB pegged the country’s soybean crop at 120.4 million tonnes, which would be up by 100,000 tonnes from an earlier estimate.
CORN futures were down slightly, as traders adjusted positions ahead of the monthly USDA report.
Weekly U.S. ethanol data showed production of the renewable fuel rising slightly on the week, to 837,000 barrels per day.
Meanwhile, total ethanol stocks in the country still tightened for the seventh-straight week, hitting their tightest level of 2020 as demand improves at a faster rate than production ramps up.
WHEAT futures were narrowly mixed, with losses in Minneapolis spring wheat and a steadier tone in the winter wheats.
New crop wheat production in Australia was forecast at 26.7 million tonnes by the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), which would be up by roughly 11 million tonnes from the previous drought stricken crop.
Meanwhile, dryness concerns in Europe and the Black Sea region remain somewhat supportive.
