By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 5 (MarketsFarm) – The ICE Futures canola market held onto gains at Friday’s close after trading to both sides of unchanged in choppy activity.
A rally in soyoil and weakness in the Canadian dollar provided underlying support, despite losses in Chicago soybeans.
Speculative buying was a feature, with losses earlier in the day also uncovering some end user demand as crush margins remain solid.
However, relatively favourable Prairie crop weather kept some pressure on the market.
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The Canadian Grain Commission released its final weekly grain movement report for the 2021/22 crop year showing a total of 5.1 million tonnes of canola were exported during the year. That was well below the 10.6 million tonnes exported the previous year. Domestic usage, at 9.3 million tonnes, was down by 12 per cent on the year.
About 17,063 canola contracts traded on Friday, which compares with Thursday when 19,370 contracts changed hands. Spreading accounted for 11,080 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were mixed on Friday with small gains in the front months and losses in the more actively traded new crop contracts. Rumours of export sales to China had given soybeans a boost on Thursday, but prices turned lower on Friday as that business was confirmed.
The United States Department of Agriculture reported private export sales of 132,000 tonnes of soybeans to China and an additional 132,000 tonnes to other unknown destinations.
Forecasts calling for spotty rains in parts of the Midwest were enough to take some weather premiums out of the market, although the long-range forecasts remain hot and dry.
A rally in soyoil was also supportive for beans, but meal was down on the day.
Positioning ahead of next week’s USDA supply/demand report remained a feature.
CORN held onto gains, despite the losses in soybeans and wheat, finding more support from the hot and dry Corn Belt weather forecasts.
Three vessels carrying nearly 60,000 tonnes of corn total left Ukrainian ports on Friday, with more likely to move in the coming weeks. The harvest is also underway in the war-torn country, with barley and rapeseed the main crops coming off the fields so far. The total grain harvest in Ukraine is forecast to reach about 65 million tonnes, down by about 20 million from last year.
WHEAT futures were mostly lower, pressured by the resumption of Ukrainian grain exports and chart-based positioning ahead of the weekend.
Next week’s USDA report will include revisions to spring wheat area in Minnesota and the Dakotas after this year’s later than normal seeding.
