By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, June 10 (CNS Canada) – ICE Futures Canada canola contracts were narrowly mixed on Friday, retreating from earlier gains to settle mixed at the final bell.
A bullish reaction in soybeans to the USDA’s monthly supply/demand report provided some spillover support for canola for much of the session.
The USDA pegged the 2016/17 US soybean carryout at only 260 million bushels, which was at the low end of trade guesses and well below the already tight 370 million bushel ending stocks forecast for the current marketing year.
Read Also
North American Grain/Oilseed Review: Canola falls back, wheat rises
Glacier FarmMedia | MarketsFarm — Canola futures on the Intercontinental Exchange retreated further on Tuesday despite entering positive territory for…
However, soybeans finished well off their highs for the day, while soyoil closed lower.
Relatively favourable crop conditions across most of Western Canada and ideas the recent advances were overdone also weighed on canola.
Increased farmer hedges also put some pressure on values, as the recent strength in the market encouraged sales.
About 25,720 canola contracts were traded on Friday, which compares with Thursday when 17,085 contracts changed hands. Spreading accounted for 11,606 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures at the Chicago Board of Trade closed 10 cents per bushel higher to 11 cents per bushel lower on Friday, supported by a report from the United States Department of Agriculture.
Soybeans stocks are expected to end the 2015/2016 crop year at 370 million bushels, which is 30 million bushels lower than last month’s estimate, the USDA said in its world agricultural supply demand estimates report.
The outlook for next year was also revised lower, which further propped up the market.
Ending stocks in the 2016/2017 crop year were cut by 45 million bushels to 260 million bushels, the USDA said.
Light profit-taking pressured more deferred contracts.
SOYOIL prices closed weaker on Friday, following losses in Malaysian palm oil.
SOYMEAL closed higher on Friday.
CORN futures were two to three cents per bushel weaker on Friday, as USDA estimates for heavy global reserves pressured the market.
Gains in the US dollar, which makes the country’s commodities less appealing to international buyers further pressured the market.
However, corn ending stocks were revised lower, which limited some losses.
The USDA reduced ending stocks by 95 million bushels to account for stronger export sales.
WHEAT closed 12 to 15 cents per bushel lower as the USDA expects bigger global supplies.
Global wheat supplies for 2016/17 were raised 3.9 million tonnes with production increases for the EU, Russia, and the United States, the USDA said.
Advances in the US dollar further pressured the market.
– The hard red wheat harvest is advancing into southern Kansas, market watchers say.
– Bayer has opened a new wheat breeding facility in Pike Lake, Saskatchewan.
