By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, March 20 (MarketsFarm) – The ICE Futures canola market traded to both sides of unchanged on Friday, finishing with small losses in the most active months as the bearish influence of the rising Canadian dollar more than offset any spillover support from soybeans.
Gains in Chicago Board of Trade soybeans provided some support throughout the session, but soyoil only held near unchanged.
Ongoing uncertainty over the COVID-19 pandemic also kept some caution in the market, leading to choppy activity.
A stronger tone in the Canadian dollar, which made attempts at moving back above 70 U.S. cents, was another bearish influence.
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About 18,680 canola contracts traded on Friday, which compares with Thursday when 27,880 contracts changed hands. Spreading accounted for 12,784 of the contracts traded.
SOYBEANS at the Chicago Board of Trade were stronger on Friday, although prices were off their session highs as activity turned choppy ahead of the weekend.
Concerns over a slowdown in South American soymeal exports amid the coronavirus pandemic were especially supportive for that market, with meal prices up sharply. Some South American ports may be forced to close due to the virus.
However, soyoil stuck closer to unchanged as losses in crude oil weighed on the vegetable oil markets.
Expectations for increased United States soybean acres this spring were also a bit bearish, especially as weakness in the ethanol market could swing some acres out of corn.
CORN futures were posted small losses in the most active months, with speculative positioning ahead of the weekend a feature.
The soft ethanol market accounted for much of the weakness in corn, with spreading against soybeans another feature.
However, solid export demand helped temper the declines, as the United States Department of Agriculture reported a sale of 756,000 tonnes to China for delivery during the current marketing year.
The USDA’s acreage report will be released at the end of the month, and positioning ahead of the data should be expected over the next week.
WHEAT futures were higher, as the global pandemic has raised the demand for flour, pasta, and other staples.
The USDA reported a private export sale of 340,000 tonnes of wheat to China, adding to the firm tone in the market.
