By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 22 (MarketsFarm) – The ICE Futures canola market was weaker at Thursday’s close, seeing a profit-taking correction after recent gains.
Losses in Chicago soybeans and European rapeseed futures accounted for some spillover selling pressure, although soyoil managed to post small gains after Wednesday’s limit-down losses.
Crop conditions remain relatively favourable across most of the Prairies, with the latest report out of Saskatchewan placing the canola crop there at 77 per cent good-to-excellent. In addition, much of southern Manitoba was receiving widespread rains on Thursday, easing dryness concerns in the region.
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Statistics Canada releases updated acreage estimates next week Wednesday, while the United States Department of Agriculture follows with its area numbers on June 30.
About 38,832 canola contracts traded on Thursday, which compares with Wednesday when 48,810 contracts changed hands. Spreading accounted for 19,932 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, seeing a speculative profit-taking correction after recent gains. Losses in crude oil accounted for some of the spillover selling pressure, although soyoil managed to edge higher in most months after Tuesday’s limit-down losses.
Shifting weekly weather forecasts showing better chances of precipitation across much of the soybean growing regions of the United States contributed to the declines, although Illinois and Indiana remain dry and the latest drought maps show an expansion of the area under drought.
CORN was also due for a correction after yesterday’s rally, with speculative profit-taking behind some of the activity.
The recent strength of the corn market has also made U.S. corn too expensive for some export customers.
Weekly export sales data is delayed until Friday.
The shifting weather outlooks were a bit bearish for corn, but key growing areas remain hot and dry, and the likelihood of further downgrades to the crop remained supportive.
WHEAT largely ignored the losses in soybeans and corn, settling mostly stronger.
Declining production estimates out of Russia and concerns that the Black Sea grain shipping corridor deal won’t be extended were supportive. The slow pace of the U.S. winter wheat harvest also underpinned the wheat market.
However, the improving moisture conditions in the U.S. spring wheat growing regions did weigh somewhat on values.
