North American Grain/Oilseed Review: Canola ends mixed

WINNIPEG, July 23 (MarketsFarm) – The ICE Futures canola market was mixed at Friday’s close, with gains in the most active nearby contracts and losses in the more deferred months.

Tightening supply projections and the need to ration demand remained supportive. Crop prospects continue to deteriorate across the Prairies, with hot temperatures and little moisture in the forecasts over the next week.

Gains in Chicago Board of Trade soyoil and a softer tone in the Canadian dollar also underpinned canola, although soybeans were weaker on the day.

About 14,528 canola contracts traded on Friday, which compares with Thursday when 19,921 contracts changed hands. Spreading accounted for 5,466 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade were lower on Friday, as the United States grains and oilseeds reacted to shifting Midwestern weather forecasts.

While the nearby forecasts remain hot and dry, the longer range outlooks point to cooler conditions across the Midwest into August which should aid with crop development.

A decline in export demand, as high freight rates deter some business, was also said to be weighing on prices.

However, the U.S. Department of Agriculture did announce private export sales of 100,000 tonnes of soybeans to Mexico this morning.

CORN was also pressured lower by the shifting weather forecasts and a lack of nearby demand.

A move below both the 20 and 100 day moving averages was bearish from a chart standpoint, encouraging some additional selling pressure.

The advancing corn harvest in Argentina also weighed on prices, with 72 per cent of the country’s corn crop off the fields, according to reports.

WHEAT futures were down across the board, with pre-weekend positioning the feature as the underlying fundamentals remain supportive. The largest losses were in Minneapolis spring wheat despite declining crop prospects.

An estimated 99 per cent of the U.S. spring wheat crop is dealing with drought conditions, according to the USDA, with the minimal rainfall in the nearby forecasts coming too late to help yields.

Declining production estimates out of Russia and Europe were also supportive.

The Western Producer

Tags: corn, canola, soybeans, wheat, CBOT