By Dave Sims and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 12 – Canola contracts on the ICE Futures Canada platform finished slightly lower Friday as rain fell in Alberta and Saskatchewan. The moisture is expected to partially alleviate dry sections of farmland, however more rain will still be needed.
“The rain isn’t going to dramatically increase canola production potential but it’s a start in getting some moderate improvement in these areas,” an analyst said.
Malaysian palm oil and European rapeseed futures were both lower which added to the declines.
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Traders were also positioning themselves ahead of the weekend.
However, the Canadian dollar was weaker against its US counterpart which made canola more attractive to domestic crushers and exporters.
Milling wheat, durum, and barley were all untraded.
Around 19,969 canola contracts were traded on Friday, which compares with Thursday when 29,759 contracts changed hands. Spreading accounted for 8,390 of the contracted traded.
Milling wheat, barley and durum were all untraded.
Settlement prices are in Canadian dollars per metric ton.
SOYBEAN futures at the Chicago Board of Trade were steady to down five cents per bushel on Friday, as the burdensome supply prospects continued to weigh on prices.
Weather conditions for the US soybean crop remain relatively favourable, while South American crops were also large this year.
The stronger tone in the US dollar index was another bearish influence, as the firmer currency cuts into export demand.
SOYOIL settled lower on Friday.
SOYMEAL futures were higher on Friday, despite the losses in soybeans. Adjustments to the soyoil/soymeal spread accounted for some of the relative strength.
CORN futures in Chicago were down three to five cents per bushel on Friday, as the market continued to be pressured by the USDA’s bearish supply/demand estimates out earlier in the week.
Nearby forecasts are looking warm with beneficial moisture across much of the Corn Belt, which contributed to the softer tone ahead of the weekend.
However, bargain-hunting at the lows and solid demand from the ethanol sector did help limit the losses.
WHEAT futures in Chicago were steady to down one cent per bushel on Friday, after trading to both sides of unchanged.
Poor export demand and the large US supply situation continued to weigh on prices, as US wheat remains overpriced internationally.
On the other side, wet weather causing harvest delays in the southern US did provide some underlying support. Dryness concerns in other wheat growing regions of the world, including Russia and Canada, were also somewhat supportive.
– Egypt bought 60,000 tonnes of wheat from Russia and 120,000 tonnes from Romania in its latest tender.
