By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, July 13 (CNS Canada) – ICE Futures canola contracts were down for the fifth-straight session on Friday, hitting their weakest levels since October as bearish technical signals and spillover from the weaker Chicago Board of Trade soy complex weighed on values.
Relatively favourable crop conditions across much of Western
Canada contributed to the declines, with commercial traders said to be seeing little reason to bid up the market at this time.
However, there are still enough areas of concern across the Prairies to provide some underlying support.
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About 20,035 canola contracts traded, which compares with Thursday when 15,872 contracts changed hands. Spreading accounted for 7,430 of the contracts traded.
SOYBEAN futures fell to fresh 10-year lows on Friday, as Thursday’s supply/demand report from the United States Department of Agriculture that raised ending stocks projections continued to cast a bearish shadow over the market.
The ongoing trade war between the U.S. and China is expected to cut into U.S. soybean exports, creating opportunities for other exporters such as Brazil.
Estimates out of the South American country predict farmers there will boost their soybean seedings in 2018, with production likely to hit a new record.
Yesterday’s USDA stocks numbers were somewhat supportive for CORN, but the grain was back testing support to the downside on Friday as the chart signals remain bearish overall.
Ideas that yields will eventually see upward revisions, as U.S. crop conditions remain favourable overall, added to the softer tone.
However, strength in wheat provided some spillover support.
WHEAT futures were mostly higher, as tightening world supply projections provided support.
World wheat ending stocks tightened by about six million tonnes from an earlier estimate in yesterday’s USDA report, with the new forecast of 261 million tonnes about 12.5 million tonnes below last year’s carryout.
Persistent production concerns in Russia and Europe could see wheat supplies tighten even more going forward, according to traders.
However, improving conditions for the North American spring wheat crop put some pressure on the Minneapolis futures, causing that market to lag the other wheats to the upside.
