By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 7 (MarketsFarm) – The ICE Futures canola market was stronger on Thursday, seeing a recovery off nearby lows in sympathy with outside markets.
Speculators had been heavy sellers during the downturn, bailing out of large long positions in the grains and oilseeds. With most of that selling pressure now flushed out of the market, canola moved higher in sympathy with Chicago soyoil, European rapeseed and Malaysian palm oil.
However, a lack of significant weather concerns across the Canadian Prairies and expectations for a large crop after the 2021 drought did temper the upside.
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About 18,436 canola contracts traded on Thursday, which compares with Wednesday when 24,413 contracts changed hands. Spreading accounted for 9,288 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, as broad gains in world equity and energy markets provided spillover support for the agricultural commodities.
Extended forecasts calling for hotter temperatures across the United States Midwest, with varied rains bringing too much moisture to some areas and not enough to others, contributed to the move higher in soybeans.
Tightening world supplies and rising demand for biofuels were also supportive.
Weekly export data is delayed until Friday, due to the July 4th holiday.
CORN was also underpinned by the shifting U.S. weather forecasts, as the crop goes into its key pollination phase.
U.S. ethanol production came in at 1.044 million barrels per day in the latest weekly report, which was down by 7,000 from the previous week. However, stocks of the renewable fuel were up by about three-quarters of a million barrels, at 23.49 million.
WHEAT was due for a correction, with chart signals contributing to the turn higher as some stops were hit on the way up.
The Ukrainian Grain Association pegged the country’s wheat crop this year at 20.8 million tonnes, which would be up by eight per cent from an earlier estimate. Wheat exports from the country were forecast to hit 10 million tonnes.
India is restricting flour exports due to its smaller crop, providing some support for the U.S. futures.
Reports that heat and dryness had cut into European production were also supportive.
However, the advancing U.S. winter wheat harvest put some pressure on values.
