By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, June 28 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Thursday, with the largest losses in the old crop July contract as participants bailed out of the front month.
July canola started the day trading at a premium of about C$11 to November, but settled at even money. With ample old crop supplies and expectations for a large crop this year, a trader said there was little reason for old crop canola to still be trading at a premium to the new crop.
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Strength in the Canadian dollar, which was up by about half a cent relative to its United States counterpart, contributed to the softer tone in canola.
Forecasts calling for some much needed rain in dry areas of Western Canada were also bearish. However, there are still plenty of areas of concern across the Prairies.
Statistics Canada and the U.S. Department of Agriculture both release acreage estimates on Friday, and positioning ahead of the reports accounted for some of the activity.
About 26,828 canola contracts traded, which compares with Wednesday when 28,670 contracts changed hands. Spreading was a feature, accounting for 23,560 of the contracts traded.
SOYBEAN futures ended lower on Thursday after trading to both sides of unchanged, as traders adjusted positions ahead of Friday’s United States Department of Agriculture acreage and quarterly stocks reports.
Average pre-report guesses are for an increase in U.S. soybean seedings by about a million acres from the earlier estimate, with quarterly stocks also up from the year-ago level.
Weekly U.S. soybean export sales of about 360,000 tonnes for old crop were at the lower end of trade expectations. However, new crop business topped trade guesses at about 640,000 tonnes.
While crop conditions remain reasonably favourable across the Midwest, some areas are starting to look too wet, with more moisture in the forecasts.
CORN ended lower on the day, with pre-report positioning the feature as traders expect to see large stocks and an upward revision to U.S. corn acres.
Weekly U.S. corn export sales of about 850,000 tonnes for old crop and 630,000 tonnes for new crop came in at the higher end of trade guesses, providing some support.
WHEAT futures were mixed, with losses in the winter wheats and a firmer tone in Minneapolis spring wheat.
Seasonal harvest pressure, improving spring wheat crop conditions, and bearish technical signals all weighed on wheat. Although, weather concerns in some wheat growing regions of the world provided some support.
Weekly U.S. wheat export sales topped trade expectations at 563,700 tonnes, helping limit the losses.
