By Jade Markus and Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 9 (CNS Canada) – ICE Futures Canada canola closed mixed on Friday.
The front July contract was supported by weather concerns, as many areas in Western Canada need additional moisture.
However, deferred contracts were pressured by increases in the Canadian dollar.
The loonie advanced against its U.S. counterpart on Friday, which is bearish, as it makes Canadian commodities less affordable for international buyers.
The United States Department of Agriculture (USDA) World Agricultural Supply and Demand Estimates report had little-effect on the soybean market, and therefore canola.
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Around 21,465 canola contracts traded on Friday, which compares with Thursday when around 18,995 contracts changed hands. Spreading accounted for 14,868 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade were up three to four cents per bushel on Friday, seeing a muted reaction to the monthly US Department of Agriculture supply/demand report.
Concerns over hot and dry weather conditions across parts of the Midwest accounted for some of the day’s strength.
The USDA forecast US soybean carryout for 2017/18 at 495 million bushels, which would be up slightly from average trade guesses. World ending stocks are forecast at 92.2 billion bushels, nearly three million tonnes above industry estimates, but down from the 93.2 million tonnes expected to be carried forward form the current 2016/17 crop year.
The USDA also raised its 2016/17 Brazilian soybean production estimate to 114.0 million tonnes, which compares to an earlier forecast of 111.6 million and the year ago level of only 96.5 million.
Export sales of 201,000 tonnes to ‘unknown destinations’ were also reported by the USDA this morning
SOYOIL futures were up on Friday.
SOYMEAL futures settled near unchanged on Friday, with losses in the most active front months as positioning against soyoil weighed on values.
CORN futures in Chicago were up by two to three cents per bushel on Friday.
US corn carryout for 2017/18 was pegged at 2.1 billion bushels, which was right in line with trade guesses and did little to move the market.
Midwestern weather remains front-and-centre for the corn market, with hot and dry conditions expected to lead to condition-rating downgrades in next week’s report.
WHEAT futures in Chicago were down by two to three cents per bushel on Friday.
US wheat ending stocks for 2017/18 were forecast at 924 million bushels by the USDA, which was up from the May estimate of 914 million.
Winter wheat production was raised slightly to 1.250 billion bushels from 1.246 billion. Analysts had anticipated a slight downgrade. Total wheat, including spring wheat, was estimated at 1.824 billion bushels.
Hot and dry weather conditions are forecast to persist across much of the key spring wheat growing regions of the country into the next week, which kept spring wheat in Minneapolis well supported heading into the weekend.
