By Dave Sims and Jade Markus, Commodity News Service Canada
Winnipeg, Mar 24 – The ICE Futures Canada canola market finished weaker on Friday, as declines in the US soy complex pointed the way lower.
Technical selling was a main feature behind canola’s drop over yesterday’s session and today, according to a trader in Winnipeg.
“The speculators put these canola/soy spreads on and then they push downward on the canola to try and make their spread work,” he said. “In this case, they’re probably just a big little more successful than they expected in driving it lower.”
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North American Grain/Oilseed Review: Canola falls, U.S. grains mixed
Canola futures on the Intercontinental Exchange suffered double-digit losses on Thursday after the release of new data from Statistics Canada….
Losses in Malaysian palm oil and European rapeseed futures helped undermine the market.
North American oilseed acreage is expected to increase this
spring, which was bearish.
Talk of cancelled canola orders was a background feature,
according to the trader.
However, global demand for oilseeds remains robust, which was supportive for the market.
Tightness in Canadian canola stocks helped prop up values.
US Grain and Oilseed Review By Jade Markus, Commodity News Service Canada
SOYBEAN futures at the Chicago Board of Trade closed 13 to 15 cents per bushel weaker on Friday, pressured by competing South American crops.
Market watchers say Brazilian producers are selling supplies into the market following heavy production, which is bearish.
Higher estimates for Argentina’s production furthered losses ahead of the weekend.
SOYOIL prices closed lower on Friday.
SOYMEAL closed weaker on Friday.
CORN futures closed mostly unchanged on Friday.
Competing supplies from South America pressured the grain ahead of the weekend.
However, ideas that the market may have become oversold, due to its steady declines, limited the downside.
Strength in the crude oil market also capped declines.
WHEAT closed about three cents per bushel stronger on Friday, underpinned by bargain buying after values hit a fresh low in the previous session.
However, rain is expected to hit dry areas of the US Plains, supporting crops in the region, which limited the market’s upside.
