By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, January 26 (CNS Canada) – ICE Futures Canada canola closed mixed, but mostly lower, on Thursday. Despite the bearish influence from outside oilseed markets, canola was able to hold relatively strong.
The US soy complex—Chicago Board of Trade soybeans, soymeal, and soy oil—was weaker on Thursday, and Malaysian palm oil closed lower overnight, which added spillover pressure to front canola contracts.
However, commercial buying limited the downside in the deferred months.
About 17,969 canola contracts traded on Thursday, which compares with Wednesday when 14,504 contracts changed hands.
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Spreading accounted for about 13,408 of the contracts traded.
Durum and barley were untraded and unchanged, while milling wheat was revised lower after the close.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade continued to fall, dropping two to five cents per bushel on Thursday. The weakness was sparked by fears farmers in Argentina will still turn out a big crop despite recent weather challenges.
The market was also backing away from the six-month highs it hit last week.
Some traders may also have been positioning themselves ahead of the release of a report tomorrow (Fri) that will outline production estimates in one of Brazil’s main soybean-growing regions.
SOYOIL futures declined on Thursday.
SOYMEAL futures softened taking some direction from soybeans.
CORN futures in Chicago finished two to three cents per bushel lower Thursday on chart-based trading.
The rise of ethanol stocks in the US is worrying some investors as the last count pegged stocks at a hefty 21.7 million barrels.
However, weekly US export sales were better than expected, which limited the losses.
WHEAT futures in Chicago finished one to two cents per bushel higher on Thursday, taking strength from strong weekly sales figures. According to the USDA, export sales reached 853,000 tonnes, which surpassed traders’ estimates of just 200,000-400,000 tonnes.
On the other side, most analysts expect India’s crop to be bigger than originally forecast, which was slightly bearish.
