By Phil Franz-Warkentin
Glacier FarmMedia MarketsFarm – The ICE Futures canola market was weaker on Thursday, as strength in the Canadian dollar and losses in soyoil weighed on values.
The Canadian dollar was up by more than half-a-cent relative to its United States counterpart, cutting into crush margins while also making exports less attractive to global buyers.
A downturn in Chicago soyoil after early gains also spilled over to weigh on the Canadian oilseed, although advances in crude oil did lend some support to the world vegetable oil markets.
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The nearby technical trends remained pointed lower for canola, with little fresh fundamental news to provide support.
There were an estimated 49,905 contracts traded on Thursday, which compares with Wednesday when 41,741 contracts traded. Spreading accounted for 35,050 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, seeing a modest correction after dropping sharply the previous two sessions.
Weekly United States soybean export sales of just over a million tonnes were down 23 per cent from the previous week and at the lower end trade expectations. However, the U.S. Department of Agriculture announced additional flash sales of 400,000 tonnes of soybeans to unknown destinations this morning.
Forecasts calling for much needed rain in some dry areas of Brazil weighed on prices, although the long-range outlook remains hot and dry. Recent rains in Argentina were said to be favourable for production there.
CORN futures held near unchanged, seeing some consolidation in two-sided speculative trade.
Weekly U.S. corn export sales of 1.4 million tonnes were at the higher end of trade estimates, providing some support.
Updated U.S. drought maps show expanding dryness across the country, raising some early questions over conditions for next year’s crop.
Argentina’s corn crop is thought to be in relatively good shape, according to reports out of the country, while questions remain over the mixed weather in Brazil.
WHEAT was underpinned by broad weakness in the U.S. dollar and the likelihood of increased export demand going forward.
Weekly U.S. wheat export sales of about 1.5 million tonnes were in line with expectations, with most of the business already reported as flash business to China last week. Total U.S. commitments are now running three per cent ahead of the year ago pace with about 14.5 million tonnes already on the books.
Forecasts calling for improving moisture conditions in parts of the Southern Plains put some pressure on values.
