By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 4 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, as hot and dry weather forecasts across North America provided support.
Heat warnings remained in effect for most of the Prairies on Friday, with the hot temperatures forecast to remain into the next week.
Sharp gains in Chicago Board of Trade soybeans and soyoil were also supportive for canola, with soyoil settling near its highest levels in ten years.
A lack of significant farmer selling pressure, given the uncertain production prospects, contributed to the gains in canola.
About 17,856 canola contracts traded on Friday, which compares with Thursday when 16,767 contracts changed hands. Spreading accounted for 7,742 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, posting solid gains on the back of hot and dry Midwestern weather forecasts. A broadly weaker tone in the United States dollar internationally was also supportive for the grains and oilseeds across the board.
Weather was the main driver in beans, as the tight old crop supply situation and strong demand projections have market participants following the new crop yield potential very closely.
Weekly U.S. soybean export sales included about 18,000 tonnes of old crop business and an additional 180,000 tonnes for new crop, which was in line with expectations.
CORN was also boosted by the weather worries, although crop conditions remain relatively favourable for the U.S. corn crop overall.
Weekly U.S. corn export sales of just under a million tonnes of old and new crop business combined came in at the higher end of trade guesses.
Persistent hot and dry weather in Brazil remained supportive, but Argentina’s corn crop has seen better conditions and yields there were beating expectations with about a third of the harvest complete.
WHEAT futures were up, with the hot weather especially supportive for spring wheat.
Weekly U.S. wheat export sales included net cancellations of 33,000 tonnes of old crop wheat, but solid new crop bookings of about 400,000 tonnes.