By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was stronger on Thursday, finding support from gains in Chicago soyoil.
Chart-based positioning was a feature amid ideas recent losses were looking overdone. End user bargain hunting and a lack of significant farmer selling on the other side also provided support.
The United States Department of Agriculture releases several key reports on Friday, including the final U.S. production numbers for the 2023 crop and updated South American projections, and traders were thought to be squaring up positions ahead of the data.
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Ample supplies continue to overhang the canola market as exports have been running well off the year-ago pace, keeping a lid on the upside.
There were an estimated 34,477 contracts traded on Thursday, which compares with Wednesday when 32,562 contracts traded. Spreading accounted for 21,052 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade stronger on Thursday, with positioning ahead of Friday’s monthly United States Department of Agriculture supply/demand report a feature. Quarterly stocks data and several other reports will also be released.
The gains came despite relative soft weekly U.S. export sales of only 280,400 tonnes, well below the low end of trade estimates.
Friday’s USDA reports will include the agency’s updated estimates on South American production, which will be followed closely. General expectations are for only minor revisions in the U.S. supply/demand numbers.
Only minor adjustments are expected in Friday’s CORN numbers as well, with prices lower on Thursday amid expectations for the likely confirmation of larger U.S. corn stocks on the year.
Weekly U.S. corn export sales of 487,600 tonnes were at the low end of trade expectations, although flash sales of 175,000 tonnes to Mexico were also reported this morning.
The Rosario Grain Exchange raised their estimate on the size of Argentina’s corn crop to a record 59 million tonnes, which would be up by three million from an earlier forecast.
WHEAT was lower across the board, with recent precipitation across much of the U.S. winter wheat growing regions behind some of the selling pressure.
Weekly U.S. wheat export sales were disappointing at only 128,100 tonnes, which was down by 77 per cent from the previous four-week average.
Friday’s USDA reports will include winter wheat seedings, with a slight decline in overall U.S. winter wheat area from last year’s 36.7 million acres expected.
