By Phil Franz-Warkentin, MarketsFarm
Winnipeg, Feb. 28 (MarketsFarm) – ICE Futures canola contracts were weaker on Thursday, hitting fresh contract lows for the fourth straight day this week as bearish technical signals kept speculators on the sell side once again.
Large supplies of unpriced canola sitting in farmers’ bins across the Prairies likely added to the softer tone, as end users are well supplied and remain content to watch prices drift lower, according to a trader.
However, gains in Chicago Board of Trade soyoil and a steady tone in the Canadian dollar provided some support, helping crush margins improve. Ideas that the market is looking oversold also helped temper the declines.
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About 24,835 canola contracts traded on Thursday, which compares with Wednesday when 21,604 contracts changed hands. Spreading accounted for 15,078 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were weaker on Thursday, with month-end positioning a feature.
Weekly United States soybean export sales of about 2.2 million tonnes came in well above market expectations, with China the major buyer, providing some support for the futures.
However, the lack of progress on trade talks between the U.S. and China kept the overall bias to the downside, as market participants wait for some concrete news.
An early end to the denuclearization talks between the U.S. and North Korea also weighed on the commodity markets in general.
CORN futures were also pressured lower by the general uncertainty in the outside financial markets.
The U.S. Department of Agriculture reported weekly corn export sales of about 1.4 million tonnes. Additional flash sales of 168,000 tonnes to Mexico and 133,000 tonnes to South Korea were also reported.
While the weekly corn sales came in at the top end of trade estimates, they were still well off the year-ago level.
WHEAT futures were mixed, with gains in Minneapolis spring wheat and losses in the winter wheats as the spreads saw some adjustment on the last trading day of the month.
Weekly U.S. wheat export sales came in at just under 500,000 tonnes.
