By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Feb. 2 (CNS Canada) – ICE Futures Canada canola contracts settled with small losses on Friday, retreating from earlier gains as support from the softer Canadian dollar was countered by spillover selling pressure from losses in the Chicago Board of Trade soy complex.
The weakness in the currency and declines in soyoil had a net neutral influence on canola crush margins, keeping the Canadian oilseed within a narrow range.
Positioning ahead of Monday’s Statistics Canada stocks report was a feature. In addition to showing grain and oilseed stocks in the country as of December 31, market participants will also be watching to see if the government agency tweaks any other older numbers.
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About 14,948 canola contracts traded on Friday, which compares with
Thursday when 22,345 contracts changed hands. Spreading accounted for 12,176 of the contracts traded.
SOYBEANS
Soybean futures at the Chicago Board of Trade moved lower on Friday, as forecasts calling for more rain across Argentina over the next two weeks weighed on prices. The moisture should help boost the yield prospects in the major soybean growing country as crops there go through their filling stage.
Chart-based speculative selling contributed to the declines, as values backed away from the nearby highs hit earlier in the week.
Poor export interest also kept soybeans under pressure, although solid domestic crusher demand helped limit the losses.
CORN
However, corn ran into resistance and held range-bound, as losses in soybeans and wheat tempered the upside.
WHEAT
All three U.S. wheat markets were lower, with follow-through selling and positioning ahead of the weekend behind much of the weakness.
Ample world supplies continue to overhang the wheat market as well, although persistent dryness concerns in the southern U.S. Plains provided some underlying support.
