By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, May 11 (MarketsFarm) – The ICE Futures canola market was weaker on Thursday, seeing follow-through speculative selling after Wednesday’s downturn.
Losses in Chicago soyoil, European rapeseed and Malaysian palm oil contributed to the weaker tone in canola. Relatively favoruable Prairie seeding weather also weighed on values, with farmers thought to be making good progress in most areas of Western Canada.
Tight old crop supplies and the need to ration demand provided some support on the other side, with weakness in the Canadian dollar also helping temper the declines in canola.
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About 25,009 canola contracts traded on Thursday, which compares with Wednesday when 36,117 contracts changed hands. Spreading accounted for 14,348 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved to both sides of unchanged on Thursday, settling with small gains in the front months and losses in the new crop contracts. Positioning ahead of Friday’s monthly supply/demand estimates from the United States Department of Agriculture was a feature.
The May 12 report will include the first official new crop production and stocks estimates, with a wide range of pre-report expectations.
Weekly U.S. soybean export sales announced Thursday morning were at the lower end of expectations, with about 110,000 tonnes of old and new crop business combined.
However, the USDA announced additional flash sales of 132,000 tonnes of soybeans to unknown destinations.
CORN was pressured by expectations that Friday’s USDA report will show large corn stocks, possibly exceeding 2.1 billion bushels for the new crop year carryout.
Weekly US corn export sales came in at 257,300 tonnes of old crop and an additional 83,100 tonnes of new crop, which were both at the lower end of expectations.
The active U.S. corn seeding pace, with over half of intended acres in the ground, also weighed on prices.
WHEAT was lower across the board, seeing some speculative selling pressure ahead of Friday’s report.
Old crop U.S. wheat export sales hit a marketing year low of only 26,300 tonnes, although new crop business was solid at 333,600 tonnes.
The ongoing conflict in Ukraine remains a feature in the background, with some talk that the deal allowing Ukrainian grain to move through the Black Sea would be extended for at least two months.
