By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, Dec. 15 (CNS Canada) – ICE Futures Canada canola contracts settled with small gains in the most active front months on Friday, seeing some consolidation after posting large losses over the course of the week.
Oversold price sentiment provided early support for canola, but larger-than-expected soyoil stocks in the United States pulled the Chicago futures lower which also weighed on canola.
The Canadian dollar was down by about half a cent relative to its U.S. counterpart, and the resulting strength in crush margins helped underpin canola.
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However, export interest remains lackluster at current levels, according to a broker who thought canola had more room to the downside before triggering some fresh sales.
About 40,111 canola contracts traded on Friday, which compares with Thursday when 36,915 contracts changed hands. Spreading accounted for 34,810 of the contracts traded.
Soybean futures at the Chicago Board of Trade settled with small losses in most months after chopping around both sides of unchanged throughout the session.
Forecasts calling for some much needed rain across most of the dry areas of Argentina over the next few days weighed on prices.
The United States crushed 163.5 million bushels of soybeans in November, which was a record for the month, according to data from the National Oilseed Processors Association. The active crush pace saw soyoil stocks rise well above expectations, which weighed on both soyoil and soybean prices.
However, good export demand was supportive. The USDA announced sales of 257,000 tonnes to China and another 126,000 tonnes of soybeans to other unknown destinations this morning.
Corn posted small losses on the day, as the market continues to hold within a rather narrow trading range awaiting some fresh fundamental news of its own.
U.S. wheat futures were mixed with positioning ahead of the weekend a feature.
The USDA announced a 130,000 tonne sale of soft red winter wheat to unknown destinations, which provided some support today. Ongoing concerns over tightening supplies of higher protein wheat also kept the Minneapolis futures underpinned.
However, the large world wheat supply situation remained a bearish influence in the background.
