By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 19 (CNS Canada) – ICE Futures canola contracts were stronger on Thursday, as the oversold market found support from concerns over hot and dry growing conditions in parts of Western Canada.
In addition to the weather concerns, canola was also underpinned by weakness in the Canadian dollar which was down by about half a cent relative to its U.S. counterpart. The softer currency should help boost crush margins and make exports more attractive to global buyers.
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Gains in Chicago Board of Trade soybeans were also supportive, although soyoil ended lower.
Expectations for a large Canadian canola crop, despite any nearby weather concerns, also tempered the upside.
About 11,884 canola contracts traded, which compares with Wednesday when 12,065 contracts changed hands. Spreading accounted for 4,426 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade settled with small gains on Thursday, as supportive technical signals helped the market continue to recover off of the multi-year lows hit last week.
Weekly new crop soybean export sales reported by the United States Department of Agriculture topped market expectations, with about 600,000 tonnes set for delivery in the upcoming crop year. However, old crop business was a bit disappointing, at only 250,000 tonnes.
Weather concerns in parts of the Midwest were also supportive, although crop conditions are generally favourable overall.
The ongoing trade dispute between the U.S. and China remains a bearish influence in the background.
CORN futures were higher, as solid export demand provided support.
Weekly U.S. corn export sales were of 1.4 million tonnes of old and new crop business combined came in at the higher end of trade expectations.
Gains in wheat also provided spillover support for corn.
WHEAT futures were underpinned by speculative buying, while ongoing production concerns in a number of key wheat growing regions of the world were also supportive.
Weekly U.S. wheat export sales of about 300,000 tonnes were an improvement from last week, but well below what was sold during the same week a year ago.
The advancing U.S. winter wheat harvest and relatively favourable spring conditions also weighed on prices.
