By Phil Franz-Warkentin and Jade Markus, Commodity News Service Canada
Winnipeg, April 6 (CNS Canada) – ICE Futures Canada canola contracts were weaker on Thursday, as speculators returned to the sell side following recent gains.
Losses in Chicago Board of Trade soybeans and soyoil accounted for some of the spillover selling in canola, according to participants.
Generally bearish chart signals were another factor weighing on values, as the gains earlier in the week were seen as a good selling opportunity.
A lack of significant end user buying interest added to the softer tone, as exporters and domestic crushers appeared content to only buy on a scale-down basis.
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The large South American soybean crop and expectations for big North American oilseed acres this spring also weighed on values.
However, concerns over tightening old crop supplies did provide some support. The possibility of seeding delays in Western Canada, due to excessive moisture in some areas, helped underpin the futures as well.
About 30,416 canola contracts traded on Thursday, which compares with Wednesday when 15,885 contracts changed hands. Spreading accounted for 23,222 of the contracts traded.
Milling wheat, durum, and barley were all untraded, although prices were revised after the close.
SOYBEAN futures at the Chicago Board of Trade closed about three cents per bushel weaker Thursday, as export sales failed to move the focus from bearish factors.
Export sales reported by the United States Department of Agriculture (USDA) in the week ending March 30 totalled 482,000 metric tonnes, which was within analyst expectations.
But recent projections for increased acreage in the US and competing supplies from South America pressured values.
SOYOIL prices closed lower on Thursday.
SOYMEAL closed weaker on Thursday.
CORN futures declined two to four cents per bushel on Thursday, feeling spill-over pressure from the nearby wheat market.
Competing supplies from South America added to the downside.
However, export sales of the commodity were strong, which limited losses.
Sales of 1.138 million metric tonnes in the week ending March 30 were well above analyst expectations.
WHEAT closed about six cents per bushel lower on Thursday, as rain in areas in the US is expected to boost crop conditions.
Heavy stockpiles of the grain also weighed on values.
However, strong export sales could underpin values in coming sessions.
Sales reported by the USDA in the week ending March 30 totalled 568,000 metric tonnes, which is bullish.
