By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 6 (MarketsFarm) – ICE Futures canola contracts settled with small losses on Thursday, seeing some consolidation after recent gains.
Ample supplies in the commercial pipeline and a lack of significant end user demand added to the softer tone, according to participants.
However, canola remains attractively priced compared to other oilseeds, and bargain-hunting was supportive at the lows.
Soybean and soyoil futures at the Chicago Board of Trade held near unchanged on the day, providing little direction for canola. The Canadian dollar was also relatively steady.
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About 20,345 canola contracts traded on Thursday, which compares with Wednesday when 31,636 contracts changed hands. Spreading accounted for 14,204 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade moved to both sides of unchanged on Thursday, but managed to hold onto small gains at the close.
China will reportedly cut tariffs on US$75 billion worth of imports from the United States later this month, which may help get more U.S. soybeans moving to the country in the aftermath of the phase one trade deal.
Weekly U.S. soybean export sales data showed soybean sales of just over 700,000 tonnes, according to the U.S. Department of Agriculture. That came in at the higher end of trade guesses. However, China only accounted for a very small amount of the total.
The Brazilian harvest is moving forward and will soon be displacing U.S. beans on the global market.
CORN was lower on Thursday. Positioning ahead of next week’s USDA supply/demand report was behind some of the activity. Spillover from the declines in wheat also weighed on prices.
Weekly US corn export sales of 1.3 million tonnes came in at the high end of expectations, providing some support.
WHEAT futures were lower, with chart-based selling a feature as prices backed away from recent gains.
Weekly U.S. wheat export sales were somewhat disappointing, at only 330,000 tonnes.
