By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, May 25 (CNS Canada) – ICE Futures Canada canola contracts ended weaker on Thursday, following losses in the US soy complex and some technical trading.
Forecasts are calling for favourable weather conditions across parts of the Prairies in the coming days, which was bearish.
Oilseed acreage in North America is expected to be extremely big, which weighed down the market. The soybean crop in the US could also get bigger if US farmers decide they can’t wait for the land to dry out and switch out their corn acres.
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However, recent rain in central Alberta and some parts of Saskatchewan has delayed seeding, according to a Winnipeg-based trader.
“Some parts of Alberta will need three of four days before they get back on the land,” he said. “We’ll be seeding into June.”
The Canadian dollar was about a third of a cent weaker compared to its US counterpart, which made canola more attractive to domestic crushers and foreign buyers.
About 12,536 canola contracts traded on Thursday, which compares with Wednesday when 9,048 contracts changed hands. Spreading accounted for 5,760 of the contracts traded.
Milling wheat, durum, and barley were all untraded.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade closed seven to nine cents per bushel lower on Thursday, pressured by ideas that delayed seeding in the US could prompt producers to switch from corn to soybeans.
Reports of increased selling from South America added to the market’s downside.
Losses in the Brazilian real have prompted producer selling, due to the bigger return that influence brings, which is bearish for US soybeans.
However, weekly export sales reported by the United States Department of Agriculture (USDA) were in line with analyst-expectations, which limited some of the market’s downside.
SOYOIL prices closed lower on Thursday.
SOYMEAL closed lower on Thursday.
CORN futures closed one to two cents per bushel weaker on Thursday, also pressured by reports of increased selling from Brazil.
Sluggish weekly export sales reported by the USDA also had a bearish effect on the market, as did ideas that China will import less corn this year.
Issues with crop quality and seeding in the US limited the downside, market watchers say.
The USDA is expected to release a crop conditions report next week, which will shed light on the situation.
WHEAT closed one to two cents per bushel lower on Thursday, feeling spill-over pressure from soybeans and corn.
However, ideas that US wheat is competitive internationally limited some of the market’s downside.
Concerns about crop conditions in key US winter wheat growing areas were also bullish.
