By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market finished higher for the fifth straight session on Friday, underpinned by supportive technical signals and spillover from gains in Chicago soybeans.
Canola had moved lower in early trade, but speculative positioning came forward to provide support and take the May contract above its 40-day moving average by the close.
The United States Department of Agriculture monthly supply/demand estimates out earlier in the day only included minor adjustments to the balance sheets, but Chicago soybeans turned higher after the data was released and soyoil took back most of its earlier losses.
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There were an estimated 38,054 contracts traded on Friday, which compares with Thursday when 44,816 contracts traded. Spreading accounted for 20,684 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, recovering from early declines after the release of the United States Department of Agriculture’s monthly supply/demand report.
The USDA lowered its Brazilian soybean production estimate by a million tonnes from February, now pegging the country’s crop at 155 million tonnes. Average trade guesses came in about three million tonnes below that, with many analysts anticipating actual production will end up below 150 million tonnes. Brazil grew 162 million tonnes of soybeans last year.
Argentina’s soybean production was left unchanged on the month at 50 million tonnes.
U.S. soybean ending stocks projections were unchanged at 315 million bushels. Average trade guesses had been for an upward revision from February.
CORN was underpinned by short covering ahead of the weekend.
The USDA raised its estimate on Argentina’s corn crop by a million tonnes, now at 56 million, and left Brazil’s corn production unchanged at 124 million tonnes. That compares with 36 million tonnes in Argentina last year and 137 million tonnes in Brazil.
Projected U.S. corn ending stocks were unchanged at 2.17 billion bushels.
WHEAT was stronger, seeing a continuation of yesterday’s rally off contract lows.
Projected U.S. wheat ending stocks for the current marketing year were up by 15 million bushels from the last report, to come in at an estimated 673 million bushels.
The USDA’s global wheat carryout projection was slightly tighter, down by 610,000 tonnes from the last estimate at 258.83 million tonnes.
The USDA also announced more cancellations of previously announced soft red wheat sales to China.
