Winnipeg, June 14 (MarketsFarm) – The ICE Futures canola market was weaker on Friday, with forecasts calling for much needed rain in some dry areas of Saskatchewan behind some of the selling pressure.
Losses in Chicago Board of Trade soyoil, large old crop supplies and the persistent trade dispute with China also weighed on values.
However, while any precipitation should help ease the drought concerns propping up the market, more rain will be needed.
Weakness in the Canadian dollar, which was down by nearly half a cent relative to its United States counterpart, also provided some support.
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Gains in CBOT soybeans also helped underpin canola.
About 27,836 canola contracts traded on Friday, which compares with Thursday when 41,433 contracts changed hands. Spreading accounted for 23,428 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, as forecasts calling for more rain across the United States Midwest helped keep a weather premium in the market ahead of the weekend.
The U.S. Department of Agriculture announced a private export sale of 130,000 tonnes of soybeans to unknown destinations this morning and another 130,000 tonnes to China. However, a cancellation of 136,000 tonnes offset that business to some extent.
CORN also found support from the wet Midwestern weather. The July futures climbed to the highest level for the front month contract in five years, with chart-based speculative contributing to the gains as fund traders added to their growing net long positions.
The USDA reported a private export sale of 125,000 tonnes of corn to unknown destinations this morning.
WHEAT was mixed, with gains in the winter wheats and losses in Minneapolis spring wheat. Concerns over harvest delays across the U.S. Plains, due to excessive moisture, were supportive.
However, chart-based profit-taking accounted for some selling pressure, as traders squared positions ahead of the weekend.
Strength in the U.S. dollar and corresponding weakness in the Russian ruble was also bearish for wheat, as Russian wheat looks more competitive on the global market.
