By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 14 (MarketsFarm) – The ICE Futures canola market settled with small losses on Friday, taking some direction from Chicago Board of Trade soyoil.
Speculative long liquidation contributed to the declines in canola, as fund traders continued to book profits on recent gains in the market.
The looming harvest also weighed on values, with anecdotal reports pointing to a large canola crop despite issues in some parts of the Prairies.
A slightly weaker tone in the Canadian dollar provided support. Good demand from both exporters and domestic crushers also underpinned the market.
About 20,501 canola contracts traded on Friday, which compares with Thursday when 13,614 contracts changed hands. Spreading accounted for 13, 982 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were narrowly mixed on Friday, although the bias was to the downside in the most active months as the market saw a modest correction after yesterday’s double-digit rally.
Chart-based positioning was a feature, as traders adjusted positions and booked profits ahead of the weekend.
Expectations for a large soybean crop and relatively favourable Midwestern crop weather added to the softer tone.
However, solid export demand was supportive. The United States Department of Agriculture reported private export sales of 126,000 tonnes of soybeans to China this morning, capping another week of solid export business
CORN futures were also taking a breather after Thursday’s rally, posting small losses.
Weather forecasts for the corn belt are mixed, with many areas expected to see an inch or so of beneficial moisture over the next week.
Declining condition ratings in France were slightly supportive.
WHEAT futures were mostly higher on Friday, seeing some follow-through buying after Thursday’s gains.
Dryness concerns in Argentina were somewhat supportive, with production estimates out of the country coming in a million tonnes or more below the USDA’s current 20.5 million tonne forecast.
Ample world wheat supplies also kept a lid on the upside.