By Dave Sims, Commodity News Service Canada
Winnipeg, January 25 (CNS Canada) – The ICE Futures Canada canola complex posted modest gains on Thursday in speculative trading.
Dry conditions in Argentina and Western Canada sparked ideas of lower yields for oilseeds in those regions, which was supportive.
Slow farmer selling helped lift prices.
However, a late selloff in soymeal eventually trickled over to the canola market.
Losses in vegetable oil and ideas of higher canola acreage this spring nibbled away at prices.
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Around 16,557 canola contracts were traded on Thursday, which compares with Wednesday when around 15,360 contracts changed hands. Spreading accounted for 11,070 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade ended unchanged to half a cent lower on Thursday. Soybeans had been poised for advances before a late sell-off in soymeal weighed down the market.
The weather in Argentina is expected to be dry over the next two weeks, which was supportive.
China imported 95.5 million tonnes of soybeans in 2017, which was up 14 per cent from the previous year. Brazil provided the lion’s share of the exports though, with the U.S. supplying the lowest amount of soybeans to China since 2006.
The corn market finished the day roughly a cent lower in choppy trading.
The basis ticked lower on the day as some farmers unloaded supplies.
The USDA attaché in Argentina forecasted the country’s corn production at 40 million tonnes this year. That’s down two million tonnes than the previous estimate.
Chicago wheat rose one cent in short-covering.
Excess dryness in Oklahoma and Texas is continuing to worsen. The basis in those areas has gotten stronger.
Wheat traders are expressing a bit of concern about the new Trans-Pacific Trade deal, feeling it may put U.S. wheat at a disadvantage to Australia and Canada.
