By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker on Thursday, as losses in Chicago soyoil weighed on values and canola continued to back away from nearby highs.
European rapeseed and Malaysian palm oil futures were also weaker on the day, adding to the softer tone in canola.
Chart-based positioning was a feature amid ideas the rally earlier in May was starting to look overdone. Recent rains across much of Western Canada were another bearish influence, as dryness concerns have subsided for the time being.
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The Saskatchewan agriculture department released their first crop report of the season, pegging total seeding in the province at 12 per cent complete with six per cent of intended canola acres in the ground as of May 6.
There were an estimated 58,778 contracts traded on Thursday, which compares with Wednesday when 54,616 contracts traded. Spreading accounted for 36,002 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were lower on Thursday, with positioning ahead of Friday’s monthly supply/demand report from the United States Department of Agriculture behind some of the activity. The report will include the agency’s first estimates on new crop production.
Average trade estimates ahead of Friday’s report call for increased U.S. soybean production and ending stocks in 2024/25, with the projected carryout as much as 100 million bushels above the 339 million bushels expected for the current marketing year.
South American production estimates will also be followed closely in Friday’s report, as the USDA is still thought to be overstating the size of Brazil’s crop.
Weekly US soybean export sales included about 430,000 tonnes of old crop business and an additional 4,500 tonnes of tonnes to move next year.
A 24-hour general strike in Argentina has halted soybean processing and export movement out of the country.
CORN was weaker as well, but lagged soybeans to the downside as gains in wheat provided some support on the other side.
Weekly U.S. corn export sales were up by 17 per cent on the week, at just under 900,000 tonnes of old crop business. An additional flash sale of 132,000 tonnes to Mexico was also reported.
WHEAT was supported by weather concerns in Russia. The major wheat-exporting country declared a state of emergency in three key wheat growing areas, as frost damaged grain crops and fields will need to be replanted.
Chart-based buying contributed to the gains in the U.S. futures, as values moved above some technical levels. However, resistance held to the upside and the futures settled well off their highs for the day.
Weekly U.S. wheat export sales included 41,000 tonnes of old crop business and 406,000 tonnes of new crop.
