By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, June 12 (MarketsFarm) – The ICE Futures canola market was stronger on Friday, as speculative short-covering helped values test nearby chart resistance.
The most-active November contract settled at the psychological C$473 per tonne level, closing above the 20-day moving average for the first time in three weeks.
Weather uncertainty in parts of Western Canada was also supportive, as some areas deal with excessive moisture and others could soon use more precipitation.
The Canadian dollar held relatively steady, providing little direction after Thursday’s sharp declines.
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About 24,838 canola contracts traded on Friday, which compares with Thursday when 31,105 contracts changed hands. Spreading accounted for 17,540 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Friday, nearing the upper edge of their nearby trading range.
The United States Department of Agriculture reported private export sales of 120,000 tonnes of soybeans to unknown destinations this morning, with China the likely buyer.
While solid export demand over the past week remained supportive, the cautious nature of U.S./China trade relations had speculators unwilling to stick their necks out too far. As a result, some long liquidation ahead of the weekend kept the gains in check.
Relatively favourable Midwestern crop weather also weighed on values, although forecasts calling for hot and dry conditions over the next week helped keep some weather premiums in the market.
CORN futures were steady, trading within a penny of unchanged.
Argentina’s corn harvest was reportedly progressing well ahead of the year-ago pace, with 61 per cent of the crop already off the fields.
Declining condition ratings the corn crop in France provided some support.
WHEAT futures were mixed on the day, with a steady tone in Minneapolis spring wheat and gains in the winter wheats as they took back some of Thursday’s losses.
While yesterday’s USDA forecast calling for record large world wheat ending stocks remained a bearish influence, the wheat market was still due for a correction.
The advancing winter wheat harvest kept a lid on the upside despite dryness concerns in some areas.
