By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Jan. 5 (CNS Canada) – ICE Futures Canada canola contracts settled with small losses on Friday, as speculative profit-taking put some pressure on values to end the week.
Strength in the Canadian dollar throughout the session contributed to the softer tone in canola, as the rising currency cuts into crush margins and makes exports less attractive to international buyers.
Ample supplies in the commercial pipeline also weighed on values, according to participants.
However, gains in Chicago Board of Trade soybeans provided some spillover support.
Read Also
North American Grain/Oilseed Review: Canola rises, down day for grains
Glacier FarmMedia | MarketsFarm – Canola futures on the Intercontinental Exchange were higher on Friday despite weakness in most comparable…
The nearby technical bias has also shifted to the upside, and canola managed to finish well off its lows for the today.
About 20,702 canola contracts traded on Friday, which compares with Thursday when 20,419 contracts changed hands. Spreading accounted for 12,286 of the contracts traded.
The ongoing drama of South American weather forecasts swung to the supportive side on Friday, helping Chicago Board of Trade soybean contracts post small gains as concerns over hot and dry conditions in Argentina moved back to the forefront. However, the longer range forecasts are calling for some moisture over the next few weeks, which tempered the upside.
Nearby technical signals were also pointed higher for soybeans, keeping some speculative buying interest in the market ahead of the weekend.
However, weekly United States export sales of only 560,000 tonnes came in below trade guesses and put some pressure on values.
Corn prices settled near unchanged, with positioning ahead of the Jan. 12 U.S. Department of Agriculture supply/demand report behind some of the activity.
Weekly U.S. corn export sales of only 101,000 tonnes were well below trade expectations. However, traders downplayed the disappointing business, as the Christmas holidays likely caused some distortions.
U.S. wheat futures were mostly lower, as end-of-the-week profit-taking and poor export demand weighed on prices. Weekly U.S. wheat exports came in well below market expectations, at about 130,000 tonnes.
While freezing temperatures and possible winterkill in the U.S. Plains remained supportive, those concerns have largely been priced into the futures for now.
