By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 18 (MarketsFarm) – The ICE Futures canola market was mostly higher on Friday, with only the lightly traded July contract still posting losses as the old/new crop spread narrowed in.
Chart-based buying on ideas yesterday’s selloff was overdone contributed to the gains, as the November contract bounced off its 100-day moving average.
A rally in the Chicago Board of Trade soy complex, tight old crop supplies and persistent dryness concerns for the new crop across much of the Prairies were all supportive.
Sharp losses in the Canadian dollar over the past week added to the firmer tone in canola, as that should boost crush margins and make exports more attractive to global buyers.
About 23,056 canola contracts traded on Friday, which compares with Thursday when 17,590 contracts changed hands. Spreading accounted for 9,786 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted solid gains on Friday, seeing a correction to end the week after posting large losses yesterday.
The fund selling that weighed on prices on Thursday had exhausted itself by Friday, with attention back on Midwestern weather and uncertain crop prospects.
While there is some rain in the forecasts, roughly 36 per cent of United States soybean crop is in some state of drought, according to the U.S. Department of Agriculture. That’s up from 31 per cent a week ago.
A 24-hour strike by port workers in Argentina was somewhat supportive as well, slowing export movement from the country.
CORN also corrected from Thursday’s declines on ideas the losses were overdone.
Positioning ahead of the weekend and the likelihood of shifting weather forecasts by the time activity resumes next week was a feature.
Ongoing concerns over the state of Brazil’s crop were somewhat supportive as well, although harvest results out of Argentina have been beating expectations, with about 42 per cent of the country’s corn harvest complete.
WHEAT futures were up across the board, taking back most of yesterday’s losses.
Dryness concerns in the U.S. spring wheat growing regions remained supportive, although ample world wheat supplies kept a lid on the upside.
