By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 10 (MarketsFarm) – The ICE Futures canola market was weaker on Friday, as chart-based profit-taking ahead of the weekend weighed on values.
Losses in Chicago soyoil and Malaysian palm oil added to the selling pressure, with expectations for increasing palm oil exports out of Indonesia behind some of the weakness in the global vegetable oil markets.
Dry areas of southern Alberta and western Saskatchewan are forecast to see some much-needed rain over the next few days. Manitoba could also see some showers, which would cause further seeding delays to the already late crop in the province.
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The Canadian dollar was weaker, providing some underlying support.
About 20,611 canola contracts traded on Friday, which compares with Thursday when 22,406 contracts changed hands. Spreading accounted for 12,212 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, seeing a correction after hitting their highest levels in a decade on Thursday.
The United States Department of Agriculture’s monthly supply/demand report provided an initial boost for the soy market, with prices bouncing higher in reaction to tighter than expected U.S. endings stocks numbers before quickly retreating.
U.S. soybean ending stocks for the current marketing year were lowered by 30 million bushels from the last report to 205 million bushels. The new crop carryout was reduced by the same amount to come in at an estimated 280 million bushels.
Global soybean ending stocks for both the current and new crop years were raised slightly, contributing to the downturn in the futures.
CORN had a mixed reaction to the monthly USDA report, settling with small gains.
The USDA raised its U.S. corn ending stocks forecast for 2021/22 by 45 million bushels to 1.485 billion. New crop corn carryout was up by 40 million from May at a projected 1.4 billion.
World corn ending stocks for 2021/22 were pegged at 310.9 million tonnes, which was up slightly from the May estimate, with new crop carryout at 305.1 million.
WHEAT was mixed at the final bell, with gains in Kansas City hard red winter wheat, losses in Minneapolis spring wheat, and a steady tone in Chicago soft wheat.
Old crop U.S. wheat ending stocks were left unchanged from May at 655 million bushels, with 2022/23 projected carryout up by 8 million at 627 million bushels.
On the world numbers, global wheat production was revised slightly lower due mainly to a 2.5 million tonne reduction in India’s crop.
Projected Ukrainian wheat production was left unchanged on the month at 21.5 million tonnes. That’s well off the 33 million tonnes of wheat grown in the country last year.
