By Phil Franz-Warkentin and Dave Sims, Commodity News Service Canada
WINNIPEG, Jan. 28 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Thursday, as losses in the CBOT soy complex and a firmer tone in the Canadian dollar weighed on values.
Chart based speculative selling was another feature in canola, as prices tested the low end of their well established trading range.
However, some buying interest was uncovered at the lows as crush margins remain relatively strong for canola. Exporters and domestic crushers continued to show solid demand, while farmers were only routine sellers on the other side.
Read Also
Canadian Financial Close: C$ ends steady Wednesday
Glacier FarmMedia — The Canadian dollar was steady on the day at Wednesday’s close, recovering from three-week lows relative to…
About 23,645 canola contracts were traded on Thursday, which compares with Wednesday when 24,830 contracts changed hands. Spreading accounted for about 14,386 of the contracts traded.
Milling wheat, durum, and barley futures were all untraded.
SOYBEAN futures on the Chicago Board of Trade suffered sharp losses Thursday, falling 14 to 15 cents per bushel, as weak demand and disappointing news from China led the way downward.
According to the USDA, China cancelled nearly 400,000 tonnes of soybean purchases from the US. The timing coincides with the beginning of harvest in South America.
Weather forecasts for Brazil are improving, which was also bearish, as that country’s soybeans are cheaper than ones from the US.
SOYOIL ended 18 points lower in sympathy with other vegetable oils around the world.
SOYMEAL futures finished lower tracking soybeans.
CORN futures on the Chicago Board of Trade dipped three to four cents per bushel Thursday feeling spillover losses from wheat and soybeans.
US ethanol weekly production slid for the second straight week, according to data from the USDA.
Exports from Argentina continue to rise with the lowering of that country’s export tax.
On the positive side a weakening US dollar and gains in crude oil were supportive.
WHEAT futures on the Chicago Board of Trade fell four cents per bushel due to waning demand and large global supplies.
Snow is expected to fall on the US plains next week which should benefit the crop, according to a report.
As exports fall due to fierce competition from countries who can offer wheat at much cheaper prices, the market is being influenced by domestic issues more and more, said an analyst.
– China imported 2.97 million metric tonnes of wheat in 2015. Of that amount, Australia led the way with exports of 1.26 million tonnes, according to Chinese customs data.
– Vietnam is expected to bump up its wheat imports to 2.6 million tonnes in 2016. Last year, the country brought in 2.37 million tonnes.
END
