By Jade Markus and Dave Sims, Commodity News Service Canada
Winnipeg, January 27 (CNS Canada) – ICE Futures Canada canola declined in low-volume trade ahead of the weekend, pressured by losses in outside vegetable oil markets.
Weakness in Chicago Board of Trade soy oil and overnight losses in Malaysian palm oil added spillover pressure to canola.
Canola is expensive compared to the US soybean market, which pressured values.
Canola’s technical bias is to the downside, market watchers say, furthering losses.
About 12,267 canola contracts traded on Friday, which compares with Thursday when 17,969 contracts changed hands.
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Spreading accounted for about 9,202 of the contracts traded.
Durum and barley were untraded and unchanged, while milling wheat was revised after the close.
Settlement prices are in Canadian dollars per metric tonne.
SOYBEAN futures at the Chicago Board of Trade chopped around for much of the day before ending the week narrowly mixed. Large production potential in South America and improving weather conditions weighed down the front-month contracts slightly.
Ideas are growing that more trade disputes between the US and outside markets could be looming, which put some uncertainty in the futures.
However, the more-deferred contracts took strength from a new report estimating Argentina’s soybean crop at 53.5 million tonnes. That would be significantly less than the 56 million tonnes produced in 2015/16.
SOYOIL futures declined on Friday taking direction from crude oil.
SOYMEAL futures finished slightly higher, with spreading against soyoil a feature.
CORN futures in Chicago finished one cent per bushel lower Friday as better weather enabled farmers in Argentina to complete 98 percent of planting.
Central Brazil is expected to receive scattered thunderstorms over the weekend, which should help the development of second-crop corn, according to a report.
However, China has announced plans to use up its massive corn stockpile in the country’s burgeoning bio-degradable plastics industry, which was slightly bullish.
WHEAT futures in Chicago finished five to six cents per bushel lower on Friday, as strength in the US dollar curbed US exports.
Some traders took profits before the weekend.
On the other side, Russia is expecting a deep freeze soon, which caused trader-concern about winterkill.
