By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
June 6, 2014
Winnipeg – ICE Futures Canada canola contracts were stronger on Friday, as chart-based buying provided some support to end the week.
Gains in CBOT soyoil provided some underlying support for the Canadian market, with good crush margins also encouraging some increased demand from domestic processors, according to participants.
There was also still enough concern over unseeded acres in parts of the Prairies to underpin the futures, said traders.
However, conditions for what is in the ground remain favourable overall, which limited the gains. Farmer selling and speculative profit-taking at the highs put some pressure on values as well.
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About 15,168 canola contracts were traded on Friday, which compares with Thursday when 23,812 contracts changed hands.
Milling wheat, durum and barley futures were untraded, although wheat prices were revised higher after the close.
CORN futures in Chicago corrected eight to 10 cents per bushel higher Friday, following wheat, after sinking to their lowest price since February 28.
Yield estimates for corn are around 165.3 bushels an acre, up from last year’s mark of 158.8, according to a report.
The basis has been steady to firm, with larger ethanol facilities chasing some cash corn, an analyst said.
Continued rainfall in the US Midwest has lifted expectations for the crop.
SOYBEAN futures at the Chicago Board of Trade were mixed on Friday as the July contract declined three and a half cents per bushel on speculation that existing supplies may meet buyer demands while technical support lifted the more deferred positions by as much as 10 cents per bushel.
There is increased optimism that US crushers will get the supplies they need from Brazil as American plants work to churn soybeans into livestock meal, said an analyst.
Final planting efforts for bean crops in the Northern Plains could be slowed if excess soil moisture is created by projected thunderstorms this weekend, according to a report.
SOYOIL futures were higher on Friday.
SOYMEAL futures were lower, with spreading against soyoil a feature.
WHEAT futures in Chicago rose 12 to 16 cents per bushel on Friday and 18 to 21 on speculation rain this weekend in the southern US Great Plains could damage the winter-wheat crop. Wet weather could cause stands of grain in the Texas and Oklahoma panhandles to become top heavy and fall over, subsequently slowing the harvest, analysts said.
Winter wheat production should be about 1.396 billion bushels, according to the latest USDA estimates.
Harvest will continue to expand in coming days, particularly in Oklahoma, potentially creating further hedge pressure, said an analyst.
– China’s Ministry of Agriculture says per-unit wheat yield and total yield this year for wheat in Shandong province should increase.
– Flour millers in Indonesia have bought around 200,000 metric tons of Russian wheat as they capitalized on competitive prices offered, according to a report.
– Egypt aims to buy about half of its domestic wheat harvest this year at 4.4 million tonnes and is unlikely ever to get much more from farmers, who need to reserve the rest for seed and to feed their families, said analysts.
Settlement prices are in Canadian dollars per metric ton.
