By Dave Sims, Commodity News Service Canada
Winnipeg, December 21 (CNS Canada) – Canola contracts on the ICE Futures Canada platform recorded losses on Thursday, dragged down by the stronger Canadian currency and weakness in U.S. soy.
Vegetable oil markets also suffered losses, which weighed on canola.
The Canadian dollar was two-thirds of a cent higher, relative to its U.S. counterpart, which made canola less appealing to foreign buyers.
Crush margins have been deteriorating over the past few days and traders are exiting the market ahead of the holiday season.
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However, there are expectations Europe will be importing more bio-diesel in the New Year, which was supportive.
Traders were squaring positions before the weekend. Markets in Canada close early on Friday and won’t re-open until Wednesday, December 27.
Around 18,707 canola contracts were traded on Thursday, which compares with Wednesday when around 23,238 contracts changed hands. Spreading accounted for 13,398 of the contracts traded.
Settlement prices are in Canadian dollars per metric tonne.
Soybean futures on the Chicago Board of Trade fell four to five cents on Thursday, weighed down by technical selling and strength in the U.S. dollar.
U.S. export sales totalled 1.74 million tonnes, which was near the top end of analysts’ estimates.
The improving weather situation in South America capped the upside.
Corn futures rose one to two cents on Thursday, propped up by strong export sales. According to the USDA, weekly sales hit 1.56 million tonnes, which exceeded most guesses by analysts.
U.S. exports of sorghum were also steady at 438,000 tonnes.
As the holidays near, farmer selling has slowed to a crawl, which was supportive for prices.
Wheat futures finished two to three cents higher on Thursday, as the current low prices brought in funds looking for bargains.
Weekly export sales were just under 800,000 tonnes, which was higher than what analysts were expecting.
Dryness concerns in the U.S. southern plains continue to lend support to the market.
