By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, Feb. 27 (MarketsFarm) – The ICE Futures canola market traded to both sides of unchanged on Thursday, closing with small gains in most months.
Only the nearby March contract ended lower, as traders exited positions in the front month ahead of its expiry.
Global equity markets continued to move lower on Thursday in response to mounting fears over the COVID-19 coronavirus. Those fears also weighed on canola, but canola was already looking overdone to the downside and managed to find some support, according to a broker.
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A steady tone in Chicago Board of Trade soybeans and weakness in the Canadian dollar also underpinned the canola market.
However, aside from some bargain-hunting, most end-users appeared content to keep to the sidelines for the time being and for the selloff in the equities to run its course.
About 30,112 canola contracts traded on Thursday, which compares with Wednesday when 34,689 contracts changed hands. Spreading accounted for 21,480 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade posted small gains on Thursday, as strength in soymeal provided spillover support.
Expectations that Argentina will increase export tariffs on soymeal accounted for some of the strength in that market, as the South American country is a major meal exporter.
However, the COVID-19 coronavirus fears roiling the global equity markets kept some caution in soybeans, limiting the advances.
Losses in crude oil and vegetable oil markets, including soyoil, also kept a lid on the upside.
Disappointing weekly United States soybean export sales of about 340,000 tonnes came in well below trade guesses.
CORN futures ended lower, finding themselves caught up in the world wide virus fears. A near limit down move in cattle futures, and likelihood of reduced demand for feed grain, put some spillover pressure on the market and corn futures set fresh contract lows in the process.
Weekly U.S. corn export sales came in at about 860,000 tonnes, which was down by about 30 per cent from the previous week.
WHEAT futures were lower across the board, also pressured by the broad worldwide concerns over the COVID-19 coronavirus outbreak.
Weekly U.S. wheat export sales of around 380,000 tonnes were up from the previous week, but still below trade expectations.
