By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 12 (CNS Canada) – ICE Futures canola contracts were weaker on Thursday, as bearish chart signals and ideas that the commodity remains expensive compared to other oilseeds weighed on prices.
Relatively favourable Prairie crop conditions added to the softer tone, despite lingering concerns over excessive dryness in some areas excessive moisture in others.
Updated supply/demand estimates from the United States Department of Agriculture led to a mixed reaction in the Chicago soybean complex, with soybeans up slightly on the day and soyoil lower.
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Steady commercial demand provided underlying support, as end users took advantage of the recent declines to book some coverage.
About 15,872 canola contracts traded, which compares with Wednesday when 21,395 contracts changed hands. Spreading accounted for 3,826 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade ended with small gains on Thursday, despite the latest supply/demand estimates from the United States Department of Agriculture that were initially deemed somewhat bearish.
The agency raised its projections for U.S. and world soybeans stocks above trade expectations, with ideas that China would be buying less beans going forward.
Weekly U.S. soybean export inspections came in at the lower end of trade expectations, with about 300,000 tonnes of cancelled business included in the latest data.
However, soybeans found some support to the downside, with short-covering helping take prices off of the 10-year lows hit recently.
CORN was underpinned by tightening stocks projections from the USDA, with prices up by five to six cents per bushel.
The government agency lowered both its U.S. and world corn stocks projections, with expectations for larger exports behind the U.S. adjustment and a downward revision to Brazilian production cutting into world supplies.
Weekly U.S. corn export sales came in at the lower end of trade expectations, putting some pressure on values.
WHEAT futures were all higher as they corrected following Wednesday’s declines. Total U.S. wheat production was raised to 1.88 billion bushels by the USDA, with spring wheat accounting for most of the increase.
World wheat carryout was lowered by about six million tonnes, to 260.9 million, due largely to downward revisions to European and Russian production.
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