By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 24 (MarketsFarm) – The ICE Futures canola market managed to see a modest correction ahead of the weekend on ideas recent losses were overdone. End-user bargain hunting was also supportive.
Gains in Chicago soyoil and European rapeseed futures provided spillover support, with crude oil and Malaysian palm oil also trading off their nearby lows.
A lack of significant weather concerns across Western Canada tempered the upside, with the overall technical trends also turning bearish after the recent downturn.
About 42,825 canola contracts traded on Friday, which compares with Thursday when 47,580 contracts changed hands. Spreading accounted for 26,604 of the contracts traded, with a narrowing of the old/new crop spread a feature as participants exit the front month.
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SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, taking back some of their recent losses with pre-weekend positioning a feature.
Weekly old crop United States soybean export sales were a marketing year low at 29,000 tonnes but were in line with expectations. New crop business, at about 264,000 tonnes, also met expectations.
Updated production estimates from the International Grains Council pegged world soybean production in the upcoming year at 387 million tonnes, which would be up by four million from an earlier estimate. Projected ending stocks were also upped by four million.
Relatively favourable Midwestern growing conditions kept some pressure on the bean market, with no immediate weather worries in the forecasts.
CORN was also due for a correction after recent losses.
Weekly U.S. corn export sales were solid, with 672,000 tonnes of old crop business and an additional 358,000 tonnes booked for movement in the new crop year.
The IGC lowered their world corn production for 2022/23 by 13 million tonnes, to 1.184 billion tonnes. That would be about 30 million tonnes below the 2021/22 crop. The projected carryout was raised due to expectations for declining consumption.
Forecasts calling for some welcome rains across the Midwest over the next two weeks kept a lid on the upside.
WHEAT had initially moved higher but ran into resistance and settled lower.
Seasonal harvest pressure accounted for some of the eventual weakness, as farmers continue to make good progress bringing in the U.S. winter wheat crop.
Weekly US wheat export sales of 478,000 tonnes came in at the higher end of expectations, providing some support.
The uncertain situation in Ukraine remained a feature in the background.
