By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, July 15 – ICE Futures Canada canola ended weaker on Friday, pressured by losses in Chicago Board of Trade soybeans.
Canola and soybean markets were feeling the bearish effects of favourable growing conditions.
Canola declined as ample moisture is helping plants in western Canada flourish, though traders say some fields are too wet.
In the US, precipitation is easing some investor-concern about dry conditions.
However, the long-term forecast shows warmer weather, which capped declines.
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The expectation that the US and Canada will both produce large amounts of oilseeds this year furthered losses.
About 20,964 canola contracts traded on Friday, which compares with Thursday when 16,654 contracts changed hands. Spreading accounted for about 3,584 of the contracts traded.
Milling wheat, durum and barley futures were all untraded and unchanged.
Corn futures finished five to seven cents per bushel lower Friday as traders booked profits before the weekend.
Showers are expected this weekend in parts of the US Corn Belt which was bearish for values as the water should help bump up soil-moisture levels before anticipated hot temperatures set in.
Argentina’s corn harvest is nearly half complete according to a new estimate by the Buenos Aires Grain Exchange (BAGE).
SOYBEAN futures were pressured four to 11 cents per bushel lower by weather forecasts, which are calling for rain to fall prior to expected hot temperatures.
The market was also pushed lower by June’s crush rate, which came in higher than expected. According to the National Oilseed Processors Association, the rate in June was 145.05 million bushels, which was more than analysts’ estimates of 142.6 million.
China auctioned off 300 million tonnes of soybeans this week at an average price of US$502 per tonne.
Soyoil finished 22 points higher, tracking gains in crude oil.
SOYMEAL futures followed soybeans lower.
Wheat futures on the Chicago Board of Trade followed corn and soybeans lower. The market was anywhere from five to nine cents per bushel weaker.
Export licenses for European soft wheat supplies have hit the one million tonne mark, which is slightly ahead of last year’s pace, according to a report.
However, interest in US wheat continues to grow in the livestock sector as producers search for cheaper feed.
– According to the USDA, 70 per cent of the US wheat crop is rated in good to excellent condition.
– The crop in Argentina is rated as being 79.3 per cent planted, according to the Buenos Aires Grain Exchange.
