By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 2 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, seeing a continuation of Thursday’s corrective bounce off contract lows to end the week as traders squared positions amid ideas recent losses were overdone.
Gains in outside markets provided spillover support, with Chicago soyoil, European rapeseed and Malaysian palm oil futures all higher.
However, relatively favourable Prairie crop weather kept a lid on the upside with timely rains in the forecast for some dry areas of Western Canada.
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About 28,455 canola contracts traded on Friday, which compares with Thursday when 41,417 contracts changed hands. Spreading accounted for 18,196 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted solid gains on Friday with speculative buying ahead of the weekend.
Weekly US soybean exports sales included 123,000 tonnes of old crop business and an additional 301,000 tonnes of new crop, which beat trade expectations.
Crush data released after Thursday’s close was also supportive, with the 186.97 million bushels of soybeans crushed in the U.S. in April a new record for the month.
Forecasts calling for hot and dry Midwestern weather were also supportive, as the soybean crop will need some timely rains over the next few weeks.
CORN was also underpinned by solid exports and Midwestern weather concerns, with little significant rain in the nearby forecasts.
Weekly U.S. corn exports included 187,000 tonnes of old crop and an additional 312,600 tonnes of new crop.
WHEAT was up across the board, recovering from overnight losses.
Weekly export data included net cancellations of 210,500 tonnes of old crop wheat, as demand shifts to the new crop which saw net sales of 466,500 tonnes.
Wheat exports out of the European Union are up by 11 per cent compared to this time a year ago, according to reports.
Uncertainty over Ukrainian exports was supportive, amid reports that Russia was obstructing movement through Black Sea ports.
