By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Feb. 15 (CNS Canada) – ICE Futures Canada canola contracts weakened on Thursday, with the largest losses coming in the final minutes of trade.
After posting solid gains on Monday, canola has run into chart resistance every other day this week and continued to face speculative selling pressure on any attempts at moving higher on Thursday.
A softer tone in Chicago Board of Trade soyoil and strength in the Canadian dollar contributed to the bearishness in canola, according to participants. The large Canadian supply situation also weighed on values.
Read Also
ICE Canola Midday: Prices suddenly turn lower
By Glen Hallick Glacier Farm Media | MarketsFarm – Intercontinental Exchange canola futures were falling back late Friday morning, after…
However, CBOT soybean futures moved higher, which provided some underlying support. Improving crush margins also supported the futures, although most of the current strength in the oilseed complex was stemming from the meal side of the equation.
About 16,249 canola contracts traded on Thursday, which compares with Wednesday when 16,101 contracts changed hands. Spreading accounted for 14,134 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were higher on Thursday, posting gains for the fourth straight session. Hot and dry weather conditions in Argentina were supportive once again, as production estimates out of the country continue to decline.
Soymeal continued to see the most strength on the back of the Argentine weather concerns, as the country is a major exporter of the livestock feed.
In U.S. export news, weekly soybean sales of about 640,000 tonnes for delivery during the current year and just under 200,000 tonnes of new crop business were in line with expectations, but down from the previous week.
Monthly U.S. crush data was also released today, with the 163.1 million bushels of soybeans crushed coming in below average trade guesses by about 2 million bushels. Stocks of soyoil increased 13 per cent on the month, hitting 1.73 billion pounds.
CORN futures were steady to slightly higher, as weekly U.S. corn export sales hit their second-highest level of the marketing-year-to-date at 1.97 million tonnes.
While the sales were good, selling was coming forward to temper any advances as farmers are still sitting on large supplies.
WHEAT futures were higher on the day, with the largest advances in Minneapolis as spring wheat had lagged the winter wheats to the upside recently.
Weekly U.S. wheat export sales were in line with expectations, at about 311,000 tonnes, but were still running at a relatively slow pace overall as large world supplies undercut some U.S. business.
Persistent weather concerns in the southern U.S. Plains provided underlying support, with speculative buying contributing to the gains after yesterday’s brief profit-taking correction.
