By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 30 (MarketsFarm) – The ICE Futures canola market was sharply lower on Friday, dropping below major chart support levels as long liquidation built on itself ahead of the weekend.
The canola market will be closed Monday, Aug. 2, for Terry Fox Day, while futures in the United States will trade their normal hours.
Declines in Chicago Board of Trade soybeans and soyoil contributed to the softer tone in canola on Friday.
However, persistent drought concerns across the Prairies remained supportive, with the nearby forecasts calling for continued heat and dryness.
About 20,571 canola contracts traded on Friday, which compares with Thursday when 13,960 contracts changed hands. Spreading accounted for 8,878 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Friday, as the market was due for a profit-taking correction after recent gains.
Forecasts calling for rain in parts of the Midwest were also bearish, although the general outlook remains hot and dry in most areas.
Soybeans will be going through their key development stages during the next few weeks, and the weather forecasts have many analysts downgrading their expectations on the size of this year’s crop.
CORN was also down with month-end profit taking.
The shifting Midwestern weather kept some caution in the corn market as well, although the crop is not at as a great a risk as soybeans.
Recent frosts in Brazil provided some support.
WHEAT futures were down with profit-taking as well, taking back some of their recent gains. The largest losses were in Minneapolis spring wheat, with the spreads between the three U.S. wheat markets seeing some readjustment.
Seasonal harvest pressure contributed to the losses, as the US winter wheat harvest nears completion.
A crop tour of the Northern Plains this week wrapped up, showing spring wheat yields in the region well below average.