By Phil Franz-Warkentin, Commodity News Service Canada
Winnipeg, March 1 (CNS Canada) – ICE Futures Canada canola contracts were stronger on Thursday, seeing a continuation of their month-long uptrend as supportive technical signals and gains in the Chicago Board of Trade soy complex provided support.
Weakness in the Canadian dollar contributed to the gains, as the currency broke below 78 U.S. cents.
However, increased farmer selling and expectations for increased seeded acres this spring tempered the upside. Transportation delays in Western Canada were also overhanging the market, with a slowdown in country movement putting some pressure on values.
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About 17,896 canola contracts traded on Thursday, which compares with Wednesday when 25,469 contracts changed hands. Spreading accounted for 7,426 of the contracts traded.
SOYBEAN futures at the Chicago Board of trade were higher on Thursday, as solid export demand provided support.
The United States Department of Agriculture reported weekly export sales of about 860,000 tonnes, which came in at the high end of market expectations. Additional flash sales of 120,000 tonnes to China and 126,000 tonnes to other unknown destinations were also reported.
The forecasts remain hot and dry across most of the soybean growing regions in Argentina over the next week, and concerns over the declining production prospects there added to the firmer tone.
However, rising production estimates out of Brazil should offset the reductions in Argentina to some extent.
CORN futures were also underpinned by solid export demand, with weekly U.S. corn export sales of 1.7 million tonnes coming in well above trade guesses.
The dryness concerns in Argentina and a rally in U.S. wheat futures were also supportive.
WHEAT futures saw a continuation of yesterday’s sharp advances, with Kansas City hard red winter wheat leading to the upside once again as speculators covered short positions.
Dryness across the southern U.S. Plains remained a key driver, with crop prospects continuing to be revised lower.
Net weekly U.S. wheat export sales of only 191,100 tonnes came in below expectations and tempered the upside.
