North American grain/oilseed review: Canola ends week at new lows

By Phil Franz-Warkentin

Glacier FarmMedia MarketsFarm – The ICE Futures canola market fell to fresh contract lows on Friday, as bearish technical signals and a lack of fresh end user demand weighed on values ahead of the harvest.

The November contract fell below nearby support at C$570 per tonne to settle at the lowest level for the front month contract since December 2020.

A lack of any major fresh weather concerns across the Prairies also weighed on prices, although heat and dryness earlier in the growing season likely cut into yield potential in some areas.

Concerns over a looming work stoppage at Canada’s two major railways kept some caution in the market, with rail activity already being curtailed, according to reports.

There were an estimated 41,470 contracts traded on Friday, which compares with Thursday when 27,135 contracts traded. Spreading accounted for 18,798 of the contracts traded.

SOYBEAN futures at the Chicago Board of Trade traded near their lowest levels of the past four years, as good crop conditions across most of the United States weighed on prices.

Increased farmer selling contributed to the declines, as producers were said to be making sales to free up bin space ahead of the harvest.

Economic concerns out of China were another bearish influence.

However, soyoil managed to turn higher as the day progressed which provided some support for beans.

CORN was also pressured by the good U.S. crop weather and increased farmer selling.

While there was more beneficial rain in the nearby forecasts, the longer-range outlooks through the end of August call for hotter and drier conditions across much of the Midwest.

WHEAT was higher on Friday, underpinned by declining European production estimates and chart-based pre-weekend positioning.

Untimely rains ahead of the harvest hurt yields in France and Germany, with quality of the European wheat crop also in question.

The escalating conflict between Russia and Ukraine was another factor in the wheat trade, keeping some caution in the market.