By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Feb. 1 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Thursday, taking some direction from Chicago Board of Trade soybeans.
Forecasts calling for beneficial rains in dry areas of Argentina accounted for some selling in soybeans, with smaller-than-expected weekly export sales for the United States contributing to the declines there.
Ample old crop canola supplies, strength in the Canadian dollar, declining crush margins, and expectations for large Canadian plantings this spring also weighed on values.
Read Also
North American Grain and Oilseed Review: Canola clings to small upticks
By Glen Hallick, MarketsFarm Glacier Farm Media MarketsFarm – Intercontinental Exchange canola futures closed a pinch higher on Friday, after…
However, canola lagged the soy complex to the downside as scale-down commercial demand provided some support.
About 22,345 canola contracts traded on Thursday, which compares with Wednesday when 17,007 contracts changed hands. Spreading accounted for 20,312 of the contracts traded.
SOYBEANS
Soybean futures at the Chicago Board of Trade moved lower on Thursday, as weekly United States soybean export sales of about 400,000 tonnes came in well below trade expectation.
Updated forecasts calling for some much needed rain in parts of Argentina over the next two weeks added to the softer tone, as traders took out some of the weather premiums that had built up in the market. Relatively favourable Brazilian crop prospects are also still overhanging soybeans.
However, weekly U.S. soymeal and soyoil sales were both solid, which provided underlying support.
CORN
Corn futures held steady on the day. While the losses in soybeans put some spillover pressure on corn, the grain found some independent strength on the back of its own solid export news.
The USDA reported weekly U.S. corn export sales of 1.9 million tonnes, which topped trade expectations.
WHEAT
U.S. wheat futures were mixed, with a firmer tone in Minneapolis spring wheat and losses in the winter wheats.
Weekly U.S. wheat export sales were disappointing, at only 389,000 tonnes, which weighed on the Chicago and Kansas City contracts.
However, adjustments in the wheat spreads helped underpin the Minneapolis market. Persistent dryness concerns in the southern U.S. Plains also remained supportive overall.
