By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Aug. 10 (MarketsFarm) – The ICE Futures canola market settled with small losses on Thursday after trading to both sides of unchanged in choppy activity.
Relatively favourable Prairie weather conditions and the looming harvest accounted for some of the selling pressure.
However, the futures ended off their lows for the day, with the November contract holding above the C$770 per tonne level.
Gains in Chicago soybeans and a steady tone in soyoil were supportive, with European rapeseed futures also mostly higher on the day.
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The United States Department of Agriculture is set to release updated supply/demand estimates on Friday, with positioning ahead of the data behind much of the activity in the North American grains and oilseeds on Thursday.
About 23,797 canola contracts traded on Thursday, which compares with Wednesday when 25,282 contracts changed hands. Spreading accounted for 15,012 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were mixed on Thursday, with positioning ahead of Friday’s monthly supply/demand estimates from the United States Department of Agriculture behind much of the activity.
Solid export demand provided underlying support, with weekly U.S. soybean export sales including 406,600 tonnes of old crop business and an additional 1.1 million tonnes for movement in 2023/24.
Average trade guesses ahead of Friday’s report call for a slight cut to U.S. soybean production from earlier forecasts, with yield estimates ranging from about 50.5 to 52 bushels per acre.
Brazil’s CONAB raised their forecast for soybean production in the country to 154.6 million tonnes. Meanwhile, Argentina’s Rosario Grain Exchange is predicting a 48 million tonne crop in that country, which would be up by about 20 million from the drought stricken 2022/23 crop.
CORN held onto small gains as weekly U.S. export sales were solid.
The USDA reported that 150,400 tonnes of corn were sold to move during the current crop year with an additional 758,400 tonnes of new crop business.
U.S. corn production is also expected to be revised lower in Friday’s report, with yield estimates ranging anywhere from 172.4 to 178 bushels per acre.
CONAB raised their Brazilian corn production forecast to nearly 130 million tonnes, which was up by 2.2 million from an earlier forecast, but off the USDA’s current reading of 133 million.
Rosario Grain Exchange’s preliminary estimate on Argentina’s next corn crop of 56 million tonnes would be well above the current harvest of an estimated 34 million tonnes.
WHEAT was mixed, with losses in Minneapolis spring wheat and gains in the winter wheats.
Weekly U.S. wheat sales hit a marketing year high of 567,600 tonnes, with The Philippines and Japan two of the largest buyers.
