By Phil Franz-Warkentin, MarketsFarm
Winnipeg, July 18 (MarketsFarm) – The ICE Futures canola market settled with small gains on Thursday, recovering from earlier losses as speculative positioning and production uncertainty provided support.
While crop conditions are relatively favourable across much of Western Canada, development is highly variable with uncertain production prospects keeping a weather premium in the market.
Only 42 per cent of the Saskatchewan canola crop was rated good-to-excellent in the latest weekly report, released during the trading session, with the majority rated fair-to-poor.
Chicago Board of Trade soybeans were slightly weaker at the close, but well off their lows for the day.
About 13,280 canola contracts traded on Thursday, which compares with Wednesday when 10,525 contracts changed hands. Spreading accounted for 3,224 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were slightly weaker at Thursday’s close, but managed to settle well off of their session lows as speculative positioning provided support.
Weekly United States soybean export sales were disappointing, with old crop business of 128,000 tonnes the smallest in 10 weeks and new crop sales of just under 200,000 tonnes.
Forecasts calling for cooler Midwestern weather also weighed on prices.
CORN posted sharp losses on Thursday, as the market was thought to be due for some profit-taking after hitting five-year highs earlier in the week.
While Midwestern weather was still hot and dry on Thursday, extended forecasts calling for cooler and wetter weather over the next few days contributed to the softer tone.
Weekly U.S. old crop corn export sales of 200,000 tonnes came in well below trade guesses, with new crop business of 133,000 tonnes also at the lower end of expectations.
WHEAT futures were lower as the advancing U.S. winter wheat harvest weighed on values. Spillover from the declines in corn added to the selling pressure in wheat.
Weekly U.S. wheat export sales were solid at about 350,000 tonne, with Mexico and South Korea the largest buyers.