By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 3 (MarketsFarm) – The ICE Futures canola market was stronger on Thursday, seeing a corrective bounce after posting losses the previous five sessions.
Chart-based positioning was a feature amid ideas the recent losses were looking overdone.
Gains in Chicago soybeans, along with concerns over hot and dry Prairie weather, contributed to the strength in the futures. Advances in crude oil and European rapeseed futures also provided spillover support, although soyoil was softer on the day.
The Canadian dollar held near unchanged, providing little direction.
Read Also
North American grain/oilseed review: Canola up in ‘turnaround Tuesday’ trade
Glacier FarmMedia — ICE canola futures strengthened in “turnaround Tuesday” activity, recovering most of Monday’s losses amid ideas recent declines…
About 26,609 canola contracts traded on Thursday, which compares with Wednesday when 24,967 contracts changed hands. Spreading accounted for 15,364 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, seeing a correction after recent losses on the back of solid export demand.
Weekly United States soybean export sales saw 2.6 million tonnes of new crop business put on the books. The U.S. Department of Agriculture also announced old crop sales of 90,600 tonnes and an additional flash sale of 132,000 tonnes to China this morning.
Forecasts calling for milder and wetter conditions across much of the U.S. soybean growing regions over the next week were bearish and tempered the upside, with rising production estimates out of Brazil also weighing on prices.
CORN was pressured by improving weather conditions, while losses in wheat also spilled over to weigh on values.
Weekly US corn export sales included about 107,000 tonnes of old crop business and an additional 350,000 tonnes for delivery during the new crop year.
WHEAT was down across the board, with seasonal harvest pressure and continued export movement out of the Black Sea region behind some of the weakness.
Weekly U.S. wheat export sales were up on the week, at 421,300 tonnes, with China and Mexico the two largest buyers.
While the ongoing conflict in Ukraine remains somewhat supportive, wheat from the region continues to move for the time being at prices cheaper than U.S. origin grain.
India is reportedly looking to import nine million tonnes of wheat from Russia, although there’s some uncertainty that a deal will actually go forward.
