By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, June 9 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Thursday, after a choppy day that saw prices trade to both sides of unchanged within a wide range.
Profit taking following recent gains accounted for much of the selling pressure, with those advances also thought to have brought in some farmer hedges, according to participants.
Relatively favourable crop conditions across most of Western Canada put further pressure on values.
However, there is still a long growing season ahead and the need to keep some weather premiums in the futures remained supportive on the other side.
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Gains in Chicago soyoil futures, weakness in the Canadian dollar, and generally supportive technical signals also underpinned the futures.
About 17,085 canola contracts were traded on Thursday, which compares with Wednesday when 30,520 contracts changed hands. Spreading accounted for 6,922 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed two cents per bushel weaker to eight cents per bushel higher on Thursday, pressured by profit-taking ahead of Friday’s United States Department of Agriculture (USDA) supply and demand report.
A wetter outlook for parts of the US added to the declines, as the market had been supported by dryness.
However, a boost in export sales reported by the USDA helped more deferred contracts gain.
Sales in the week ended June 2 were up noticeably from the previous week and increased 98 per cent from the prior four-week average, the USDA said in a report on Thursday.
The expectation for lower yields from Brazil also underpinned the market.
Brazilian industry group, CONAB, revised its estimates of Brazil’s soybean production by 1.3 million metric tonnes to 95.6 million metric tonnes, which is bullish.
SOYOIL prices closed stronger on Thursday, tracking advances in Malaysian palm oil.
SOYMEAL closed lower on Thursday, following nearby grain markets.
CORN futures were three to six cents per bushel weaker on Thursday, as rain forecasts pressured the market.
Anticipated showers in the US will support crop development, market watchers say, which is bearish.
However, stronger export sales and increased ethanol production limited losses in the market.
Exports in the week ended June 2 were up 18 per cent from the previous week and from the prior four-week average, the (USDA) said in a report on Thursday.
Last week’s ethanol production was the second largest on record, analysts say.
WHEAT closed eight to nine cents per bushel lower on Thursday, as investors started profit taking ahead of Friday’s USDA report.
Traders expect tomorrow’s report to show high global stocks, which is bearish.
Wheat sales came in below analyst expectations, which further pressured prices.
– Net wheat sales for the 2016/2017 marketing year, which began June 1, totaled 223,800 metric tonnes, the USDA said.
– Oklahoma producers have finished harvesting wheat, according to reports on Thursday.
