By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Jan. 26 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Friday, although activity was thin and choppy with spillover selling from the losses in Chicago soybeans countered by strength in soyoil.
A forecast from Agriculture and Agri-Food Canada predicting a one million acre increase in canola area in 2018 compared to 2017 added to the softer tone, with the government agency pegging canola plantings at a record 24.0 million acres.
Ag Canada is also predicting large ending stocks of 2.0 million tonnes for the current crop year and 2.25 million by July 2019. That would compare with the 1.3 million tonnes carried forward from this past crop year.
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Solid end-user demand and a lack of significant farmer selling were supportive, helping limit the losses.
About 11,282 canola contracts traded on Friday, which compares with Thursday when 16,557 contracts changed hands. Spreading accounted for 6,636 of the contracts traded.
Soybean futures at the Chicago Board of Trade moved lower on Friday, as weekly soybean export sales reported by the United States Department of Agriculture came in below trade expectations at about 760,000 tonnes (old and new crop combined).
Chart based selling, as prices backed away from nearby resistance, contributed to the declines.
However, ongoing concerns over dry conditions in Argentina provided some support, with some intended acres likely going unseeded due to the lack of moisture.
CBOT corn futures were firmer, as weekly U.S. corn sales of about 1.5 million tonnes topped trade guesses and brought in some short-covering ahead of the weekend.
The USDA also announced a private export sale of 125,000 tonnes to unknown destinations this morning.
All three U.S. wheat markets were higher, with the Chicago and Kansas City winter wheats leading to the upside as speculators covered short positions.
Weekly U.S. wheat export sales of about 430,000 tonnes came in at the high end of trade guesses, lending some support. Dry conditions in the southern U.S. Plains added to the firmer tone.
However, the large world supply situation continued to weigh on values.
