By Phil Franz-Warkentin and Jade Markus, Commodity News Service
Winnipeg, June 26 – ICE Futures Canada canola contracts were down on Friday, seeing some speculative profit-taking to end the week following the recent run-up in prices.
The rally over the past two weeks also likely encouraged some farmer selling, according to participants. However, most producers remain on the sidelines for the time being given the uncertainties over new crop production.
Those uncertainties remain a major supportive factor, said traders, especially as forecasts continue to call for hot and dry weather across the Prairies.
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Gains in CBOT soybeans were also somewhat supportive.
Statistics Canada and the USDA both release updated acreage estimates next week Tuesday, and positioning ahead of the reports likely accounted for some of the activity.
About 27,335 canola contracts were traded on Friday, which compares with Thursday when 19,035 contracts changed hands.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed stronger Friday amid forecasts of rain in the US Midwest, which would further drench already wet crops. Analysts say more rain might mean farmers are not able to plant additional soybean acres, which is bullish.
If crops are planted, they’d be put at risk for a host of issues including diseases and a lack of sun, which is also supportive.
SOYOIL settled lower on Friday, following Malaysian palm oil prices, which sunk as Indonesia considers implementing an export tax.
SOYMEAL prices settled stronger on Friday, following soybean futures.
CORN futures closed higher on Friday as prices hit a two-month-high, following sharp gains seen in wheat.
Market watchers say corn crops are at risk for fallow syndrome, which happens when plant roots are exposed to air after being submerged in water, which is bullish.
Reports that corn isn’t planted to levels market watchers originally thought also provided support for prices.
WHEAT futures in Chicago closed sharply higher on Friday as continued rain in the US farm belt put soybean crops at further risk for disease and flooding.
Analysts are also considering the possibility of vomitoxin affecting crops, a toxin which affects plants in wet conditions, occurring the the US farm belt, which added to the bullish tone.
Market watchers are also saying global grain supplies may not be as high as traders previously expected, which further underpinned values.
Buy stops were hit on the way up, which helped to amplify the advances.
Settlement prices are in Canadian dollars per metric ton.
